The Investment Association (IA) has suspended the yield requirements for both its UK equity income and global equity income sectors due to the dividend cuts, cancellations and deferments from companies caused by the coronavirus crisis.
IA rules currently require funds in their equity income sectors to achieve an historic yield on the distributable income in excess of 100% of the UK-focused FTSE All-Share or global-focused MSCI World at each fund's year-end on a three-year rolling basis, and 90% on an annual basis. Funds not meeting these requirements are usually thrown out of the sectors, with a number of historic examples having already been dumped. However, dividend payments are currently under pressure as listed companies around the world struggle with Covid-19-related lockdown scenarios, with some funds likely t...
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