Investment Management Association chief executive Richard Saunders says he remains “confident” his proposals for managed fund sector labels remain the “best answer” for the industry.
The IMA’s decision to rename the active, balanced and cautious sectors with letters representing the degree of manager discretion in the funds has been criticised by IFAs and fund managers.
While the IMA’s proposals are open to consultation, Saunders (pictured) says any other approach could “risk sending the wrong message” to investors.
He says: “We are not ruling anything out at this stage and we are listening, but we think what we have come up with is the best answer. It is difficult to see something that works better without sending the wrong message.
“There is a lot of hankering to stick with what we have got, but that is not tenable.”
The IMA plans to create a new managed D peer group for the least risky managed funds. Saunders says he expects some absolute return funds to migrate to the new managed D sector.
He says: “We suspect that a number of funds which currently sit in the absolute return sector will migrate to the managed D sector when it comes in.”