Four vehicles, including the £1.7bn Schroder Income fund, have rejoined the Investment Association's UK Equity Income sector after being ejected in recent years.
Last month, the IA lowered the UK Equity Income sector's yield hurdle from 110% to 100% of the index's yield over a three-year rolling period, while failure to achieve 90% of the index yield in any one-year period would result in a fund being removed from the sector.
The move followed a comprehensive review of the sector including consultation with members and advisers, after a number of big funds were kicked out of the sector for failing to meet the yield criteria.
However, the changes mean a number of funds previously ejected from the sector have been able to reapply.
Currently, four fund have elected to rejoin the sector: the £1.8bn Schroder Income fund managed by Kevin Murphy and Nick Kirrage; Carl Stick's £1.4bn Rathbone Income fund; the £12.6m Close OLIM UK Equity Income fund run by Angela Lascelles; and Ciaran Mallon's £534m Invesco Perpetual Income & Growth.
Their readmission to the sector takes effect from 3 April.
A statement from Rathbones said: "We have elected to return to the sector and secondly have offered our time and resource to be part of the working group - this to help shape the instigation of deeper, client-focused, relevant, robust and meaningful guidelines for these extremely important and popular funds."
Meanwhile, Schroders added: "We welcome the decision made by the Investment Association and are pleased to confirm that the Schroder Income Fund will be re-joining the IA UK Equity Income sector."
Volatility Managed sector launched
Meanwhile, the Investment Association has officially launched its new Volatility Managed sector, in response to the growing number of outcome-focused products of offer.
The new sector is made up of 83 funds that aim to manage returns within specified volatility parameters, and comprises combined assets under management of £19.3bn.
The IA sectors committee will conduct a 12-month review in a year's time to ensure the sector has continued to work in the best interests of consumers and their advisers.
It will look at disclosure levels and whether it is possible to develop or sub-categorise the sector in a way that better serves investors.
The full list of funds in the new sector includes multi-asset ranges managed by Henderson, Rathbones, Architas, Aviva Investors and Standard Life Investments, and can be found here.
The IA's director of investment and capital markets Galina Dimitrova (pictured) said: "The launch of the Volatility Managed sector is the latest step by the industry to ensure the IA sectors continue to evolve alongside market changes and appropriately reflect the advent of more outcome focused products available to investors.
"We will continue to monitor the sector definitions across the board to ensure they work in the best interests of consumers and their advisers and appropriately reflect the wide range of funds the industry has to offer."
The IA began consulting with members on a reorganisation of its sector structure to better accommodate 'outcome-focused' funds in February last year. It followed multiple calls by some fund groups to reconsider the classification of risk-targeted funds, which did not have their own sector.
Ultimately, the trade body chose to launch a new sector over a complete reorganisation of the existing sectors, on the view the solution will "retain the overall scheme's current clarity for consumers and their advisers".
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