IA lowers UK Equity Income yield hurdle to 100% following sector review

Down from 110%

Daniel Flynn
clock
IA lowers UK Equity Income yield hurdle to 100% following sector review

The Investment Association (IA) has lowered the UK Equity Income sector's yield hurdle from 110% to 100% of index yield over a three year rolling period, following a widely anticipated review into the sector.

Although the new three year rolling yield target is now set at 100%, failure to achieve 90% of the index yield in any one year period will still result in a fund being removed from the sector. Previously, the IA's sector definition said: "Funds that fail to meet the 110% average yield for each three year rolling period will be removed from the sector." This has resulted in many high-profile funds being moved to the UK All Companies sector including the Invesco Perpetual High Income and Income funds, Rathbone Income and Evenlode Income. Funds industry: Our solutions for UK Equity Incom...

To continue reading this article...

Join Investment Week

  • 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 Investment

Bestinvest's bi-annual Spot the Dog finds over £45bn is still in underperforming portfolios

Bestinvest's Spot the Dog finds fewest underperformers in six years

Number of dog funds more than halves

clock 08 August 2022 • 4 min read
The £237m Baillie Gifford British Smaller Companies Fund was rated as not providing value.

Baillie Gifford UK equity strategies suffer low ratings in AoV

One red and four amber funds

clock 08 August 2022 • 2 min read
Royal London group chief executive Barry O'Dwyer

RLAM AUM shrinks 9% in H1 but sustainable funds remain popular

9% decline in AUM

clock 05 August 2022 • 2 min read
Trustpilot