Fund managers have hit back at the Investment Association's review into the yield requirements of the UK Equity Income sector, arguing its targets are attainable.
The review was launched in April after groups including Schroders, Rathbones and Invesco Perpetual saw funds expelled from the sector as they failed to meet its requirement to generate 110% of the FTSE All Share index's yield over rolling three-year periods. Critics have argued the sector pushes stockpickers into a small number of companies with unsustainably high yields, such as oil and mining majors, and have championed the two alternative definitions suggested by the IA. However, since the consultation closed on 13 May, some commentators have said a 110% target, or even higher, rem...
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