Kearney says the fact the £31m fund, which the IMA placed into the UK equity income and growth sector in March 2009, invests almost totally in the UK equity income sector means it is logical to ask for the move once it has completed its one-year tenure in the sector in March this year.
He says: “The important thing was it did not have an impact on our process but you have to consider that within the Aberdeen multi-manager income fund only one underlying holding was in the UK equity income and growth sector in the shape of Neptune income.”
Recent research by Money Marketing found that only one of the 18 funds sitting in the IMA UK equity income and growth sector failed to meet the yield requirement for the IMA UK equity income sector of 3.43 per cent, which is 110 per cent of the FTSE All-share yield on January 12, 2010.
Invesco Perpetual head of distribution Ian Trevers says: “It has become apparent that the split is not helping advisers or their clients and is unnecessary. We look forward to working closely with the IMA to ensure a more relevant, less confusing situation is implemented to the benefit of all.”