Stoakley says IMA should have stuck with UK equity income split
Share
Schroders head of UK intermediary business Robin Stoakley says the Investment Management Association is wrong to recombine the UK equity income sectors.
Last week, MoneyMarketing.co.uk revealed that the trade body was merging the UK equity income and UK equity income and growth sectors following a review.
The IMA has introduced a number of new tests for the UK equity income sector, including a “hard-edged” annual test to ensure that funds offer a base level of income every year of 90 per cent of the FTSE allshare yield.
Stoakley says the IMA should have stuck by its decision in March 2009 to divide the sector in two.
He says: “The more sectors there are within the IMA, the better it is for IFAs as it allows a better comparison of funds that are currently in the same sector but are perhaps doing different things. That said, there was lots of talk that a number of funds within the IMA UK equity income and growth sector were looking to move back into the UK equity income sector.”
Hargreaves Lansdown senior analyst Meera Patel says: “They should widen the sectors in other areas but not income.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
