Income funds face IMA sector ejection

A number of high profile UK equity income funds are at risk of being ejected from the Investment Management Association (IMA)'s UK Equity Income peer group next July, when a long-running review of the sector ends.

Funds must have achieved the IMA’s basic yield target of 110% of the FTSE All Share yield over a three-year rolling period to remain in the UK Equity Income sector. They must also run an income level of at least 90% of the FTSE All Share yield, on an annual basis, to keep their place in the sector.  A number of funds’ positions are under threat as they have produced sub-par yields over the past two years. High-profile funds The St James’s Place Equity Income trust, headed by RWC’s Nick Purves, as well as the £343m Henderson UK Equity Income fund, run by James Henderson, are two ...