Funds industry: Our solutions for UK Equity Income sector problems

IA launches review into equity income sector

Daniel Flynn
clock • 5 min read

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

UK retail sales record tepid growth in final quarter of 2024
UK

UK retail sales record tepid growth in final quarter of 2024

0.4% growth year-on-year

Sorin Dojan
clock 07 January 2025 • 2 min read
City minister Tulip Siddiq refers herself to government adviser on ministerial standards
UK

City minister Tulip Siddiq refers herself to government adviser on ministerial standards

Following recent anti-corruption probe

Linus Uhlig
clock 06 January 2025 • 2 min read
Revised figures show zero UK real GDP growth in Q3
UK

Revised figures show zero UK real GDP growth in Q3

Revised ONS figures

Sorin Dojan
clock 23 December 2024 • 1 min read
Trustpilot