IMA tightens up Cautious Managed sector definition

The IMA has amended its Cautious Managed sector definition to prevent funds breaching peer group req...

The IMA has amended its Cautious Managed sector definition to prevent funds breaching peer group requirements. Under the altered rules, maximum equity exposure is limited to 60% and funds must have at least 30% in fixed interest and cash. There is no specific requirement to hold a minimum percentage of non-UK equities within the 60%, although assets must be 50% in sterling or euros. Equities are deemed to include convertibles. The body said the changes were introduced as the existing definition was loosely worded and the sector housed some markedly different vehicles. Despite the amendm...