Four vehicles, including the £1.7bn Schroder Income fund, have rejoined the Investment Association's UK Equity Income sector after being ejected in recent years.
Last month, the IA lowered the UK Equity Income sector's yield hurdle from 110% to 100% of the index's yield over a three-year rolling period, while failure to achieve 90% of the index yield in any one-year period would result in a fund being removed from the sector. The move followed a comprehensive review of the sector including consultation with members and advisers, after a number of big funds were kicked out of the sector for failing to meet the yield criteria. However, the changes mean a number of funds previously ejected from the sector have been able to reapply. Currently,...
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