FUND MANAGEMENT NEWS

IMA ANNOUNCES NEW CHINA SECTORS
The Investment Management Association (IMA) yesterday announced the creation of the China/Greater China sector and the new definition of the Global sector. Both changes will come into effect from 1 January 2011. The former will be defined as funds investing at least 80 per cent of their assets in equities of China, Hong Kong or Taiwan. The Global sector will include funds investing at least 80 per cent of their assets globally in equities, regardless of thematic or industrial focus.

MERRION CUTS ABSOLUTE RETURN FUND FEES
Merrion Investment Managers has cut the annual management charge on its European Absolute Return fund to 0.5 per cent from 1 per cent. The reduction, which applies to investments over €5m, is available to any investment made before 31 December. The lower rate will be in effect for the duration of the investment and will also apply to any subsequent additional investments in the fund. The absolute return fund has returned 9.5 per cent since inception in June 2010.

INDXIS UNVEILS MERGENT FUND INDEX
Provider of investment products Indxis has earlier this week announced the launch of the first UK Mergent Dividend Achievers Index for index tracker providers. The index includes UK firms that have increased their annual regular cash dividends for the past five or more consecutive years. The launch of the fund follows its US counterpart, which has attracted over $7bn in assets under management to linked funds offered by investment firms such as BlackRock and Vanguard.