UK’s IMA pushes back Managed sectors change until October
The UK’s Investment Management Association has moved back the date it will implement changes to the Managed sectors by three months after calls from members for more time to discuss proposals.
The IMA – the UK industry body for asset managers – confirmed the changes to the sector names now come into effect from October, as opposed to July, subject to feedback.
The decision to postpone the changes comes after an outcry from fund groups who have criticised proposals to re-name the Balanced, Cautious and Active sectors to Managed A, B, C and D.
At the end of May, the IMA announced it would scrap the existing definitions and names of the Managed sectors while adding the Managed D sector to sit below the existing Cautious Managed sector in the risk/reward hierarchy.
The IMA said the new sector names have been chosen in order to highlight that the funds are in some way ‘managed’ – meaning the manager has a degree of discretion in asset allocation that is not present in all sectors.
However, Fidelity, Investec and Skandia, among others, called on the IMA to rethink the move.
The consultation period for groups to give feedback has also been extended to the end of July.
Meanwhile the future of the Absolute Return sector is also still being reviewed.