Funds gear up for IA UK Equity Income sector return

Follows lowering of yield hurdle

clock • 4 min read

Funds ejected from the Investment Association's UK Equity Income sector could potentially rejoin the ranks following the industry body's decision to lower the yield hurdle from 110% of the FTSE All-Share to 100%.

A review into the IA UK Equity Income sector was launched in April 2016 after a number of high-profile funds, such as those run by Invesco Perpetual, Rathbones, Henderson and Schroders, and most recently Evenlode and Montanaro, were removed from the sector for failing to produce an average yield of 110% of the All-Share over a three year-rolling period. The IA invited members and financial advisers to submit feedback on three proposals: no change to the existing criteria, removing the yield requirement or requiring specific yield disclosure. Last week, the IA announced a decision that...

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