Montanaro blasts IA UK Equity Income sector rulings 'dangerous' after ejection

Next fund to be removed

The £127m Montanaro UK Income fund is the latest mandate to lose its place in the Investment Association's UK Equity Income sector, as the group blasts the sector's rulings for "rewarding" funds that have produced lower or even negative returns.

The group's head of business development Tom Norman-Butler said the firm is "disappointed" the fund, managed by Charles Montanaro (pictured), will be shortly be removed for failing to to reach 90% of the FTSE All-Share yield during 2015 - the sector requires funds to achieve a historic yield on the distributable income in excess of 110% of the FTSE All Share yield at the fund's year end, and not fall below 90%. However, the sector has faced much criticism for this criteria and the IA has launched a review. "The IA calculates yield based on the year-end NAV of a fund. Ironically, this ...