The Investment Association (IA) has suspended the yield requirements for both its UK equity income and global equity income sectors due to the dividend cuts, cancellations and deferments from companies caused by the coronavirus crisis.
IA rules currently require funds in their equity income sectors to achieve an historic yield on the distributable income in excess of 100% of the UK-focused FTSE All-Share or global-focused MSCI World at each fund's year-end on a three-year rolling basis, and 90% on an annual basis. Funds not meeting these requirements are usually thrown out of the sectors, with a number of historic examples having already been dumped. Funds industry set for fresh regulatory wave amid questions of 'systematic importance' However, dividend payments are currently under pressure as listed companies ar...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- 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
