View more on these topics

IMA bids to figure out fund formula for yield standard

The Investment Management Association is looking at devising a standardised way of calculating yield for the UK equity income sector.

All funds are required to disclose yields but some firms have been concentrating on coming top of the total return rather than yield tables.

Equity income funds are meant to deliver a yield of at least 110 per cent of the yield of the FTSE All Share.

Figures from Morningstar show that while managers such as Neil Woodford top the UK equity income sector in terms of total return, the latest yield return on both his income and high-income funds, which are 4.07 per cent and 2.48 per cent respectively, fall below the 4.3 per cent sector average.

The top-yielding fund, Scottish Widows UK equity income portfolio, is fourth quartile over one, three and five years.

IMA head of communications Mona Patel says: “This is something that we have been talking to our members about, as there is no regulation that defines which way a fund declares its yield and what we want is one way to calculate all of these funds and then present that as a plausible solution to the FSA.”

Cofunds communications officer Richard Eats says: “The important thing is that while these funds do chase growth of income, they still do what they say on the tin, something which the IMA has to keep an eye on.”


It’s a small world

Global portfolios have undergone something of a renaissance of late. Five years ago, there were some 118 portfolios in the Investment Management Association’s global growth sector while today there are around 162 with a three-month track record. Its popularity has to a degree been driven by the move towards multi-manager, with several funds of funds […]

Fidelity starts EMEA trend

Fidelity International

Fidelity Funds Emerging Europe, Middle East and Africa Fund

InFocus - thumbnail

In Focus — February 2015

Jelf Employee Benefits looks at the issue of paying anaesthetist fees when the patient had no chance to discuss or agree to them prior to care; and provides recommendations for avoiding this scenario.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm