Asset managers have suggested a number of different options for the "long overdue" overhaul of the Investment Association's UK Equity Income sector, after the trade body launched an official review last week.
Its consultation proposes two alternatives to the sector's current requirement for member funds to provide at least 110% of the FTSE All Share's yield over rolling three-year periods, but some industry figures have already criticised these options as insufficient and suggested other solutions. The review is in response to industry concerns current requirements are pushing funds into a small number of companies with unsustainably high yields, while there have been a number of recent evictions. Almost immediately following the Investment Association's (IA) review announcement, Rathbones...
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