IFAs were not particularly concerned about changes to the Managed sector definitions, according to the IMA's focus groups. After seeing the IMA's proposals for the shake-up, I would suggest they definitely should be.
You may remember, the review of the sectors was commissioned following years of complaints about the classifications and investor confusion about what funds in these multi-asset sectors were supposed to do. The Cautious Managed sector was a particular bug-bear. Just how ‘cautious' were these funds? Were investors being misled? Unfortunately, the IMA's proposals appear to make the issue even more opaque and not offer much needed clarity for investors. The IMA believes it can keep the sector names vague (Managed A,B,C,D) and get investors to dig deeper to read the full definitions. This...
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