The IMA has amended its main definition of funds in the Absolute Return sector to emphasis the fact they should be delivering absolute returns over a 12-month timeframe.
Introduced in April 2008, the sector was reviewed by the IMA last month to assess its development. Following the rejection of several funds' applications to join the sector based on their performance, the IMA has stated a fund's returns should be considered on a 12-month basis within its main sector definition. Previously, this description was only included in a sub-note. The latest classification states all funds should aim to deliver above zero returns in any market conditions, typically over 12 months. However, the sector will remain unmonitored as the IMA says funds not meeting th...
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