The IMA has changed its Global Emerging Markets sector definition, which will now be based on FTSE or MSCI GEMs indices rather than World Bank definitions.
Effective from 1 February, funds in the IMA sector will now need to invest 80% or more of their assets in emerging market equities as defined by the relevant FTSE or MSCI Global Emerging Markets index.
The current rules allow funds to invest 80% or more of their assets directly or indirectly in emerging markets as defined by the World Bank, without geographical restriction. The indirect investment component - for example China shares listed in Hong Kong - is currently restricted to 50% of the portfolio.
More to follow...
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