The long-awaited overhaul of the Absolute Return sector is finally here. But do the IMA's changes clarify the funds' nature enough for you to advise clients to invest into them?
Targeted Absolute Return is set to replace Absolute Return as the name for the fund sector from the start of June. The changes, which mark the culmination of a review first announced in May 2011, will also see the Investment Management Association (IMA) overhaul its requirement for funds to beat a cash plus benchmark over rolling 12-month periods. Under the new definitions, all funds in the sector must, at a minimum, target positive returns in any market conditions. All funds in the sector must also state a timeframe over which they are aiming to meet their specified target. The targe...
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