View more on these topics

Morgan urges IMA to be flexible on yields

JP Morgan head of UK retail sales Michael Parsons believes the Investment Management Association’s new UK equity income requirements should be flexible in the current volatile market conditions.

He says UK equity income managers are faced with a difficult challenge as some clients want performance in these sorts of markets rather than yield.

The IMA has looked to tackle yield concerns by stating that UK equity funds must achieve a yield on distributable income in excess of 110 per cent of the FTSE All Share yield.

JPM’s premier equity income and UK strategic income funds are both in line with the new requirements.

Parsons says: “There is no point in having a sector if you do not look to achieve that 110 per cent target but in markets like these, you have to have a degree of flexibility but that is a decision for the IMA.”

Wilson Dean director Nick Lincoln says: “When people go into UK equity income, they expect funds with dividends but if yields get slashed as they do in markets like these, some flexibility is by no means a bad thing. I would look to the six or 12-month rolling yield as a more accurate measurement.”

Investment, p26


Efficiency drive

With the UK stockmarket down by almost 20 per cent since its October peak, investors are increasingly focusing on capital preservation, particularly conservatively managed funds.

Whole of market is not a pretence

Regarding the letter from Peter Amott, of course, Ken Davy is right to say best advice is independent. How can it possibly be as good when you have a restricted list to choose from?

Document replaces menu and IDD

The FSA will introduce a single services and costs disclosure document to replace the menu and initial disclosure document from August. It stresses the documents are only guidance and advisers can use the old documents until August 2009.

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]


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