IMA calls for reduction in yield requirements to be scrapped

Reduction in yield (RIY) figures fail to provide a comprehensible measure of the costs of investing, ...

Reduction in yield (RIY) figures fail to provide a comprehensible measure of the costs of investing, the IMA has claimed. The association has therefore called for RIY requirements on authorised funds to be abolished, claiming they bring no apparent benefit to consumers. Director of authorised funds at the IMA Julie Patterson said the association remains of the view that RIY is a calculation designed for life products and can be misleading when applied to funds. "RIY is calculated over fixed periods of time so will generally not be the same periods over which the consumer wishes to inve...