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August 2016 poll results

What level of yield should an equity income fund be forced to pay?¹

  • At least 10% more than the market: 14%
  • More than the market: 35%
  • I don't mind - just be transparent: 51%

The rules for fund inclusion in the Investment Association's (IA) UK equity income sector are the most stringent of all categories: funds are required to produce a yield at least 10% higher than the UK stock market.

A significant number of funds have recently fallen foul of this mandate and have been excluded from the sector, prompting a review of the rules.

We wanted to see how FundCalibre visitors felt about the subject and our poll in August asked what they would prefer. More than 50% of respondents prioritised simple transparency over the level of income produced. As long as they understood the aim of the fund and could make their own decisions, they didn't think a specific yield target was necessary. 35% believed an equity income fund should be achieve a higher yield than the market, whilst the remaining 14% agreed with the IA’s current requirement of a yield at least 10% more.


Read more on some Elite Rated funds which have been more recently removed from IA's UK Equity Income sector:
- Rathbone Income removed from the IA UK Equity Income sector
- Evenlode Income latest victim of Investment Association yield rules


¹Results based on feedback from 73 FundCalibre visitors from 01/08/16 - 31/08/16