IMA announces sector changes

The UK Zeros sector is to be shut at the end of the month, the Investment Management Association (IMA) has announced.

All funds currently classified in this way will then be moved into the IMA Specialist sector and marked appropriately.

The IMA had conducted a review of the matter through a Performance Category Review Committee.

It found that, with only five funds included in the sector, it was not possible for there to be ’fair comparisons’ between the products.

UK Zeros was originally launched in 2004 and included a total of ten funds.

The group included investment products which had large proportions of zero-dividend shares, commonly preferred by investors as a lower-risk alternative to other types of stocks, in their portfolios.

’As a general rule, IMA sectors should have a minimum of ten funds in a sector,’ the organisation said.

The UK asset management industry, of which the IMA is the trade body, is worth approximately £3 trillion.ADNFCR-2318-ID-19340199-ADNFCR