IMA Launches Mixed Investment 0-35% Shares Sector

Wednesday 25 January 2012

The Investment Management Association (IMA) today announces the launch of its Mixed Investment 0-35% Shares Sector,* with an effective start date of 1 January 2012.

This follows the announcement of the IMA and ABI’s harmonisation of its managed and mixed investment sectors to provide greater clarity to consumers.** The launch of the Mixed Investment 0-35% Shares sector was deferred pending sufficient demand from IMA member funds to populate it: a minimum of 10 funds were required to launch the sector. The IMA can now confirm that 13 funds have been submitted for classification to the sector.

For the purposes of calculating IMA sector averages and IMA statistical reporting, the IMA Mixed Investment 0-35% Shares sector will have an effective launch date of 1 January 2012.


Notes for Editors

*Please find below the list of funds in the Mixed Investment 0-35% Shares sector.


Former Sector Classification

7IM AAP Moderately Cautious fund


7IM Moderately Cautious fund


CF 7IM Income


CF 7IM Personal Injury


AXA Defensive Distribution

Mixed Investment 20-60% Shares

Barclays High Income Portfolio


Barclays Income Portfolio


Barclays Wealth Global Markets 1


City Financial Diversified Fund

Mixed Investment 20-60% Shares

Fidelity Multi Asset Allocator Defensive Fund

Mixed Investment 20-60% Shares

Fidelity Multi Asset Defensive Fund

Mixed Investment 20-60% Shares

Fidelity Retirement Income Fund

Mixed Investment 20-60% Shares

Jupiter Distribution Fund

Mixed Investment 20-60% Shares

Mixed Investment 0-35% Shares

Funds in this sector are required to have a range of different investments. Up to 35% of the fund can be invested in company shares (equities). At least 45% of the fund must be in fixed income investments (for example, corporate and Government bonds) and/or “cash” investments. “Cash” can include investments such as current account cash, short-term fixed income investments and certificates of deposit.

  • Maximum 35% equity exposure (including convertibles)
  • No minimum equity requirement
  • Minimum 45% investment grade fixed income and cash
  • Minimum 80% investment in established market currencies (US Dollar, Sterling & Euro) of which 40% must be Sterling
  • Sterling requirement includes assets hedged back to Sterling

Notes to definitions

  1. At any one time the asset allocation of a fund in these sectors (particularly the Flexible Investment sector) may mean that the fund meets the requirements of more than one sector. The fund would remain in the elected sector on these occasions, but subject to complying with these notes.
  2. The “look-through” principle will apply when considering securities that are structured with the legal form of an equity (such as a listed investment trust and some listed ETFs), but manage or invest in different underlying assets such as property, commodities, etc. Where the underlying entity itself invests in equities, the holdings are classified as equities. Further details may be obtained from the monitoring company. The monitoring company’s decision is final.
  3. Funds in the sectors which do not appear to comply with the “spirit” of a definition will be removed from the sector. Funds will be issued with a warning before they are removed. The “spirit” may be considered as being whether a fund’s investments or strategy tends towards the achievement of the overall sector scheme objective of allowing like-for-like comparisons to be made between funds. Managers should note that the user group for sectors should be assumed to be consumers and their advisers. Funds should not rely in making their case on applying a narrow, legalistic or unusual interpretation to what are in practice broad definitions. Decisions will be made by the ABI Investment Classification Committee or the IMA Sectors Committee and will be accepted as a peer group decision by funds in the sectors.

**Please click here for the press release on harmonisation of the IMA and ABI’s managed and mixed investment sectors.

For further information please contact:
Clare Murphy-McGreevey, Media Relations Manager, IMA, 020 7831 0898 or 07843 517618
Mona Patel, Head of Communications, IMA, 020 7831 0898 or 07834 089332
Email: [email protected]

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