The Investment Association has launched a consultation on the qualification rules for the UK Equity Income sector, after a number of prominent funds have been kicked out of the sector over the past couple of years.
Some £19bn of income funds currently sit in the UK All Companies sector, after being exiled from the UK Equity Income sector for not having produced sufficient income under the present rules, according to Hargreaves Lansdown. The biggest players to be kicked out of the sector include Invesco Perpetual's income range, currently managed by Mark Barnett (formerly by Neil Woodford), as well as the Schroder Income fund and Jupiter Responsible Income fund. For inclusion under the IA's current definition of the sector, funds must invest at least 80% in UK equities and achieve a historic yiel...
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