Good News & Bad News, page-22977

Fund Managers generally have to abide by the fund rules which means distributing money "evenly" across the sectors that fund applies to, if one of those sectors outperforms and skews the distribution they will move funds from one sector to another to keep within the "rules". e.g as a fund investor if I bought into an Australian Small Cap Resources fund 4 years ago that contained PLS and a bunch of resource stocks that didn't perform as well as PLS and PLS becomes 25 or 50% of that fund the fund managers would be forced to sell PLS because the"rules" would deem it to risky to have such an unbalanced fund. The rules and evenly are made by the funds themselves and are arbitrary and apply to only that fund however they do have some government guidance these days. We have Barclays etc to thank for that