The Investment Management Association (IMA) has announced that its UK zeros sector will close at the end of September 2009 because the five funds it now contains are not sufficient to give consumers and financial advisers a fair comparison. The funds will move to the IMA specialist sector.
The zeros sector was originally set up in April 2004 with ten funds investing in a high proportion of zero dividend preference shares (or equivalent instruments which were previously categorised in the UK other bond sector) and targeting capital growth and total return.
IMA sectors provide consumers and financial advisers with a framework for comparing similar funds. The IMA normally requires a minimum of 10 funds in a sector.
View IMA announces closure of UK zeros sector, 28 August 2009