We publish annual yield figures achieved by funds in the UK Equity Income and the Global Equity Income sectors in two yield spreadsheets.
UK Equity Income
In July 2010 the Investment Association decided to publish the annual yield figures achieved by funds in the UK Equity Income sector.
Global Equity Income
In January 2011 the Investment Association created the Global Equity Income sector and also decided to publish the annual yield figures achieved by funds in the sector.
Modification of Yield Test
In April 2020, the IA announced new guidelines for the monitoring of the UK Equity Income and Global Equity Income sectors. In the context of severe economic dislocation caused by the COVID-19 pandemic, the IA temporarily suspended the yield tests that are part of the sector parameters for inclusion in the sectors.
The tests were reinstated from 24th September 2021. The annual 90% yield hurdle test is applied as it was before the moratorium but, to account for the impact of the dividend suspensions and postponements caused by the COVID-19 disruption, the three-year rolling average test is modified as follows:
- Every fund has the opportunity to roll off one fund accounting year from the three-year average yield test.
- Each fund may only roll off one year affected by the pandemic: either a fund accounting year ending in 2020 or 2021.
- The fund has only one opportunity to choose to roll off a year. This opportunity will arise when the fund next submits yield data to the IA beginning with funds that have a year end in September 2021.
For full transparency, all the yield figures will continue to be displayed on the equity income yield spreadsheets on the IA website (see above). From September 2021, the year highlighted in yellow will be excluded from the 3-year yield test.
This note sets out the detailed guidance for firms on the re-instatement of the yield hurdles.
