The Investment Management Association (IMA) has confirmed the creation of a China/Greater China sector from January 1, 2011, and is set to consult on the introduction of both global and European equity income sectors.
Funds that classify for the new sector will have 80% of their assets invested in China, Hong Kong or Taiwan. Offshore funds will also be included in the sector, which will have its definition reviewed after 12 months.
The IMA has also redesigned the Global Growth sector. As revealed earlier this year, the sector will be renamed Global and will accommodate funds investing at least 80% of their assets globally in equities, regardless of thematic or industrial focus.
Global income funds will remain in the sector with the sector committee set to consult on the potential creation of both a global and a European equity income sector next year. (article continues below)
Jane Lowe, director of markets at the IMA, says: “These changes reflect the overall aim of the sector classification scheme to keep the sectors large and inclusive within clear parameters. The new sectors will enable investors to identify investment opportunities both globally and in China.
“The new ’Global’ sector will allow a greater number of funds offering a range of global strategies into the sector. Funds focusing on China or Greater China form a clear and distinct group. Investors will now be able to identify and compare these funds on a like-for-like basis.”