Global equity income funds at risk of IMA sector exit in 2015

Global equity income funds must face up to the prospect of switching sectors in 2015 as the Investment Management Association (IMA) begins to monitor rolling three-year yields.

The IMA established the Global Equity Income sector in January 2012, the trade body stipulating then that eligible funds must produce a yield equivalent to 110% of that of the MSCI World over a rolling three-year period.  With its three-year anniversary now on the horizon, the IMA has confirmed it will begin monitoring yields in a similar way to the UK Equity Income sector rules, which have seen several funds exit that sector in recent years. The IMA will also publish yield data for global equity income funds on its website from 2015 onwards, in keeping with the current practice for U...