Incoming!

Richard Romer-Lee discusses the separation of the UK Equity Income sector into two parts, what this revision will mean for the industry and the effect it will have on returns

There has been much comment over the last couple of weeks about the division of the UK Equity Income sector to form a revised UK Equity Income sector and a Growth & Income sector. The main change is the new UK Equity Income sector will comprise funds that "aim to achieve a historic yield on the distributable income in excess of 110% of the FTSE All-Share Index", as opposed to a prospective basis, as used to be the case. Meanwhile, funds in the UK Equity Income & Growth sector "aim to have a historic yield on the distributable income in excess of 90% of the yield of the FTSE All Share Index ...