All change for the UK equity income and growth sector
Following a review of its UK Equity Income sector, the Investment Management Association (IMA) is splitting the sector and providing a new definition for the new IMA UK Equity Income and Growth sector.
As a result of the review, IMA has:
removed from the UK Equity Income sector all funds within the sector that fail the yield test based on 12 months’ look-back as at 31 December 2008, but taking into account final distributions if these are out of step with a fund’s calendar year end, and amend the definition accordingly;
created a new sector known as the UK Equity Income and Growth sector effective from 1 January 2009;
offer funds that fail to meet the definition of the UK Equity Income sector (based on the yield criterion) a home in the new sector, permitting the retention of track records, if they meet the definition;
funds in other sectors may apply to move to the new sector if the fund is able to demonstrate that it has complied with the definition on an on-going basis; track record retention will not be automatic.
Sector changes formally became effective on 1 January 2009.