Burgeoning UK Other Bond sector redundant

Increasing diversity and lack of restrictions in sector under Ucits III render it irrelevant as a comparable peer group, industry figures claim

As more sophisticated tools are adopted under Ucits III, the range of funds in the UK Other Bond sector has become so diverse that many believe the peer group is becoming irrelevant. The only requirements the IMA has on this sector is that funds have at least 80% in Sterling-denominated assets and at least 20% in below BBB minus credit, convertibles and income-producing preference shares. The unlimited geographical remit means that some funds can obtain their return on a global basis while others may choose to invest in just one region. As the past year has demonstrated, this means very ...