IMA changes Global Emerging Markets benchmark

The IMA has changed its Global Emerging Markets sector definition, which will now be based on FTSE or MSCI GEMs indices rather than World Bank definitions.

Effective from 1 February, funds in the IMA sector will now need to invest 80% or more of their assets in emerging market equities as defined by the relevant FTSE or MSCI Global Emerging Markets index.

The current rules allow funds to invest 80% or more of their assets directly or indirectly in emerging markets as defined by the World Bank, without geographical restriction. The indirect investment component - for example China shares listed in Hong Kong - is currently restricted to 50% of the portfolio.

More to follow...