Insight Investment‘s Diversified Target Return fund is moving to the IMA’s Absolute Return sector after the trade body sent a reminder to its members of the annual return timeframe in the sector’s criteria.

The specialist funds arm of BNY Mellon said that while the fund complies with the classification criteria of both the Absolute Return and Cautious Managed sector (where it currently resides), it was felt the former was a better fit for the fund.

Today’s announcement comes after Cornelian Asset Management pulled out of the Cautious Managed sector earlier in the month as the FSA continues its assessment of how diversified portfolio products are marketed.

Despite the fact that the Cornelian Cautious fund had been in the IMA Cautious Managed sector for almost six years, the group took the decision to move that and its Growth fund which was in the Balanced Managed IMA cluster.

Mike Pinggera and Steve Waddington will remain as the lead management on the fund despite the change, which becomes effective today.

In a statement, explaining the changes, Pinggera said there has been considerable growth in the number of funds within the Absolute Return sector and the time was right to make the switch.

He added, ‘There is no change to the Fund’s investment approach or its fund management team.’