Peer (group)pressure

As asset management groups continue to challenge the boundaries of traditional fund management, IMA sectors are becoming increasingly difficult to use for comparing funds. Multi-managers and advisers, therefore, need to take the extra time to study the intricacies of each fund's mandate

It is becoming increasingly difficult to use the IMA sector definitions as a useful way of short-listing funds for consideration. The reason for this is that asset management groups are pushing the boundaries of traditional fund management - focused, 130/30, multi-asset, market neutral, strategic, absolute return and non-UK equity income mandates are all examples of burgeoning sub-sectors within the market. The IMA has been active in trying to improve the current structure of the sectors with the most recent definitions of the new strategic bond, corporate bond and high yield bond sectors...