View more on these topics

IMA to change managed sectors labels to letters

The Investment Management Association plans to rename the active, balanced and cautious Managed sectors managed A, B and C and create a new managed D peer group for the least risky managed funds.

The IMA says the move is designed to indicate that funds are ‘”managed’” and therefore more subject to “a degree of manager discretion”, or freedom to move money between different types of assets.

“Additionally, the names are intended deliberately to provide no other information about the sector, thereby encouraging users of the sectors to do more due diligence to understand the nature of funds that would fall into the underlying sectors,” the group’s report explains.

The D sector sit below the current Cautious Managed in the “risk/reward hierarchy”, but its exact nature will be determined in a separate consultation.

The IMA will retain the Absolute Return label for the foreseeable future. However, the Managed D consultation will consider whether it should be included in the new sector.

Jane Lowe, the director of markets at the IMA, comments: “The changes we have outlined are intended to bring about a better understanding of the sectors and how they fit together.”


News and expert analysis straight to your inbox

Sign up


There are 6 comments at the moment, we would love to hear your opinion too.

  1. Ok so we will now have

    A = Active
    B = Balanced
    C = Cautious
    D = Defensive?

    A massive change, well done to the committee who came up with this genius labelling system. A quantum leap from the current one I’m sure you’ll agree.

    Why not name them after the maximum equity content? At least that gives people an understanding of the differences.

  2. Do these people actually think their labelling makes a difference ?

    I wonder how many (overpaid) man-hours went into these massively important deliberations. They all deserve a bonus.

    Who pays thir wages anyway ?

  3. Fraser Brydon 26th May 2011 at 4:00 pm

    oh, this will be really handy, not! Come on a five year could do better, simple solution call them equity/cash funds and show the split i.e Balanced 80/20 etc,cautious 60/40 etc….who pays them?

  4. Absolutely awesome. It’s clear than none of these people have ever talked to a client. They could have kept the existing names and simply changed the definitions and moved the funds as appropriate but that is obviously far too easy.

    Common sense in absentia.

  5. I concur with Anonymous, the sactors souild be
    This will be accurate and could not accidentally give investors any clue as to what to expect. After all, what right do they have to hold the investment managers to account? Apart from it being their money and their appetite for risk?
    As Homer would say “Doh!”

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm