Woodford's Equity Income fund at risk of expulsion from IA sector

One-year yield falling short of requirements

The £8.3bn CF Woodford Equity Income fund, managed by Neil Woodford, is at risk of losing its place in the Investment Association's UK Equity Income sector, as its one-year yield is falling short of the sector's requirements.

In statistics updated this morning, following the end of February deadline for groups to supply the IA with their latest yield data, the fund's yield for the year ending 31 December 2015 was 3.4%. For the same period, the FTSE All Share yielded 3.7%. To meet the sector requirements funds must yield 110% of the FTSE All Share yield on a three-year rolling period, which for 2015 was 4.1%. Woodford: Multi-sector dividend cuts 'highly likely' in 2016 A spokesperson for the IA said it will hold conversations with groups where funds are currently not meeting the sector requirements and be...