Skandia: IMA should create sector for ‘risk-targeted' funds

Skandia Investment Group (SIG)is calling on the IMA to introduce a new sector for 'risk-targeted funds', with legacy 'managed' portfolios shifted to an alternative category where returns are the driver.

In both cases relative performance could be assessed around realised volatility and associated risk-adjusted returns, SIG says. The IMA is currently consulting again with fund management groups over proposed changes to the Managed sectors. Its original plans were greeted with uproar from a number of leading houses, including Fidelity and Investec. In a recent Skandia survey, 84% of advisers did not think the relabeling of the IMA sectors from Aggressive, Balanced and Cautious to A, B and C would help consumer understanding of the level of risk they are taking. Skandia research a...