IMA delays response on absolute return sector

The Investment Management Association (IMA) is delaying its response on the absolute return sector review.

Daniel Godfrey, who took over as the chief executive of the IMA on December 1, has said a response on the review is more likely to come in the first quarter of 2013. 

He said: 'I am aware we had hoped to have clarity on the future shape of the absolute return sector by the end of 2012.  This is an important issue for consumers and, having only taken over as chief executive this month, I want to consider all the evidence and all the options thoroughly before we take any final decision. 

'A great deal of research and work has already been done and the input from the industry has been excellent. I expect we will be in a position to announce the conclusion of our review by the end of February.'

When the IMA announced its review into the sector it said the absolute return category allowed funds of the same nature to be grouped together, but the downside is that it lacked detail.

'It does not, for instance, add relative volatilities, and nor does it consider asset type,' said the IMA's Jane Lowe (pictured) at the time.

At the end of the review the absolute return sector could be tied to the IMA's managed sectors, depending on where funds sit on the risk spectrum.  There was also the possibility of the funds being grouped by their outcomes, rather than assets.