Fund groups urge IMA to follow Morningstar lead on AR sectors

Last week, Morningstar said the newly created sectors would offer investors clearer descriptions in the underlying strategies and asset classes and moves away from the term ‘absolute return’, which has faced scrutiny in recent years. Christopher Traulsen, director of European and Asian fund research for Morningstar, said: “Absolute Return as a fund category definition has become too associated with a broader industry marketing term that has made performance promises that have often failed to deliver,” Underlying portfolio and risk exposures now determine Morningstar’s category selecti...