Evenlode Income fund latest to be ejected from IA's UK Equity Income sector

Will join IA UK All Companies sector on 1 June

The £524m Evenlode Income fund, managed by Hugh Yarrow, is the latest fund to be moved from the Investment Assocation's UK Equity Income sector to the UK All Companies sector after it failed to meet strict yield criteria.

At Evenlode's year end on 29 February, its average yield was 3.7%. This was below 110% of the FTSE All Share yield, which was 3.8%, that is required to stay in the sector. The sector requirements have faced much criticism over the years following funds such as the £1.4bn Schroder Income and £528m Invesco Perpetual Income & Growth being removed from the sector last year.  Most recently, it was announced in April that Carl Stick's £1.2bn Rathbone Income fund would be ejected this month. Evenlode manager Yarrow (pictured) said: "This sector move has no impact on our approach to managi...