Henderson: IMA has got it wrong on UK Equity Income rules

James Henderson has criticised the Investment Management Association (IMA)'s review of the UK Equity Income sector, ahead of the potential ejection of his top performing fund later this year.

As revealed by Investment Week recently, a number of high profile UK equity income funds are at risk of being ejected from the peer group when a long-running review of the sector ends in July. Funds must have achieved the IMA’s yield requirement of 110% of the FTSE All Share yield over a rolling three-year period to remain in the sector. Earlier this month, the £1.2bn St James’s Place Equity Income trust, managed by RWC’s Nick Purves, was the first casualty of the rule and was subsequently ejected by the IMA for failing to meet the minimum yield target. Henderson, who runs the £390...