IMA opts against changing fixed income sector currency rules

Last November the IMA was considering tightening the sector definitions, amid concerns some fund managers in the £ Corporate Bond sector were using currency bets heavily within their portfolios. The IMA sector definition says funds are required to invest at least 80% of their assets in sterling denominated assets (or hedge 80% of the portfolio back into sterling) with a maximum of 20% of portfolios exposed to bonds denominated in overseas currencies. Investment Week understands the IMA was considering reducing the 20% maximum allocation to overseas currencies to reduce currency bets. ...