The Investment Management Association (IMA) has removed a further two funds from its UK Equity Income sector for undershooting minimum yield requirements over the past three years.
The £140m JPM UK Strategic Equity Income fund, managed by Ben Stapley, and the £23m Marlborough UK Income and Growth trust, run by Geoff Hitchin (pictured), have both been ejected from the sector.
Investment Week revealed last December a number of funds would fall victim to the IMA's minimum yield threshold in 2013, which requires funds to achieve the IMA's basic yield target of 110% of the FTSE All Share yield over a three-year rolling period.
JPM UK Strategic Equity Income has moved to the UK All Companies sector after consistently failing to meet that yield target.
In 2010-2011 the fund yielded at 2.8% at its year-end, below the 110% of the All Share mark (3.2%). The vehicle beat requirements the following year, but its 3.6% yield as of 31 January 2013 gave it a yield equivalent 105% of the All Share over a three-year period.
Marlborough UK Income and Growth, meanwhile, has moved to the IMA Unclassified sector after also failing the three-year test.
That is partly a factor of recent struggles: in 2012-2013 the fund yielded 2.9%, well below the necessary 3.6% mark.
Both J.P. Morgan and Marlborough declined to comment.
Earlier this year the £1.2bn St James's Place Equity Income trust, managed by RWC's Nick Purves, was also kicked out of the UK Equity Income sector for failing to meet the minimum yield target.
Neil Woodford's £13.7bn Invesco Perpetual High Income fund is also at risk of ejection after undershooting requirements in recent years.
The fund's end-2013 yield must be equivalent to at least 117% of the FTSE All Share yield at that date if it is to remain in the sector.
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