IMA scraps UK Zeroes sector

The Investment Management Association (IMA) is to close the UK Zeroes sector and will shuttle the five remaining funds invested in the asset class into the Specialist sector.

The Zero class of fund was established in 2004 when the then 12 funds in the area were moved from the Other Bond division. Since then the number has steadily dwindled.

Somewhat ironically, the IMA decision follows hot on the heels of a wave of new zero dividend preference share issues and renewed investor interest in the class.

Many have argued that following changes in the relative burden of taxation toward income there is a compelling argument to revisit split capital investment.

The market remains well below its previous levels however, and despite canvassing the idea, no investment business is thought to have gone far in planning new funds.

 The IMA said that it considered that the minimum number of mandates in a sector to consider it viable was 10.