IMA merges UK Equity Income sectors

The IMA has reverted to a single UK Equity Income sector as of 1 July.

This follows a review of the UK Equity Income and UK Equity Income & Growth sectors which was completed in February 2010. Following the merger, the classification of the UK Equity Income sector has been adjusted. The goal of achieving a yield in excess of 110% of the FTSE All Share is now expressed as an intention, rather than a necessity, the IMA says. It will also now be measured over a rolling three-year period. Managers will also have to deliver a base level of income every year and a "hard edged" annual test will be applied to ensure that funds are sufficiently income-focused...