IMA abandons equity cap proposals

Association confirms proposals to overhaul bond sectors, but decides against imposing 5% equity limit on fixed interest funds

The IMA has abandoned proposals to impose an equity cap on fixed income funds after three firms objected. It pitched the idea earlier this year as part of an overhaul of existing bond sectors, with most of the suggestions now confirmed. Capping the equity content on bond vehicles would have forced several high-profile funds into managed peer groups. These include Invesco Perpetual £2bn-plus Monthly Income Plus, run by Paul Causer, Paul Read and Neil Woodford, George Luckraft's Axa Framlington Managed Income and Artemis High Income, run by Adrian Frost and Adrian Gosden. Existing sec...