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

Down from 110%

Daniel Flynn
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...

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