Income funds face IMA sector ejection

clock

A number of high profile UK equity income funds are at risk of being ejected from the Investment Management Association (IMA)'s UK Equity Income peer group next July, when a long-running review of the sector ends.

Funds must have achieved the IMA’s basic yield target of 110% of the FTSE All Share yield over a three-year rolling period to remain in the UK Equity Income sector. They must also run an income level of at least 90% of the FTSE All Share yield, on an annual basis, to keep their place in the sector.  A number of funds’ positions are under threat as they have produced sub-par yields over the past two years. High-profile funds The St James’s Place Equity Income trust, headed by RWC’s Nick Purves, as well as the £343m Henderson UK Equity Income fund, run by James Henderson, are two ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Trustpilot