IMA unveils Greater China sector and revamps Global Growth

The IMA has created a new China/Greater China sector and redefined its Global Growth category.

Following consultation with its members, the new China/Greater China sector will be defined as funds investing at least 80% of their assets in equities of the People's Republic of China, Hong Kong or Taiwan.

Investment in assets can be direct or indirect to reflect investors' synthetic access to China.

The definition of the China/Greater sector will be reviewed a year after its creation, as the sector gains maturity and the number of funds classified within it grows.

Meanwhile, Global Growth is to be renamed Global. The new sector will accommodate funds investing at least 80% of their assets globally in equities, regardless of thematic or industrial focus.

The previous definition allowed for funds which invested at least 80% of their assets in equities, but not more than 80% in UK assets, and which had the prime objective of achieving growth of capital.

Global equity income funds will remain in the sector for the time being. The Sectors Committee will consult on the potential creation of Global Equity Income and European Equity Income sectors in 2011.

Both new sectors will be effective as of 1 January 2011.

Jane Lowe, director, 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."