IMA's Income and Growth sector landscape revealed

Managers in new UK Income and Growth peer group believe increasing difficulty in achieving yield will see more vehicles joining the sector

The recently-launched IMA UK Income and Growth sector, is now home to 17 funds. However, with yield now difficult to find, managers in the sector believe they will quickly be joined by more funds crossing over from the UK Equity Income sector. The IMA definition for funds in the UK Income and Growth sector is that they must have a historic yield on distributable income of more than 90% of the yield of the FTSE All Share. This yield requirement is down from the 110% for the UK Equity Income sector and the funds must also be at least 80% invested in UK equities and aim to produce both incom...