IMA changes Global Emerging Markets benchmark

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...