Funds investing a minimum 80% of assets in emerging market bonds, as defined by a recognised global emerging markets bond index, will fall into the new category as of the end of December.
The Global Bonds sector has been re-defined as a result of the creation of the new sector, and will now exclude those funds that have over 80% of assets in emerging markets.
The Sterling High Yield Bond sector has also been reviewed, requiring an 80% minimum investment in sterling bonds rated below BBB- fixed income securities, including unrated bonds but excluding convertibles, preference shares and permanent interest bearing shares.
Hybrid assets in the Sterling Strategic and Global Bonds sector will be treated as non-core following the review.
In a statement on the website, the association said: “The changes will be effective from 31 December 2013, and firms with funds in the existing sectors will have until 31 March 2014 to come into compliance. Funds entering a new sector are expected to comply at entry.”
Last month the IMA revealed the worst performing absolute return funds; find out more here.
