Following a recent review of the UK Equity Income and UK Equity & Bond sectors, the Investment Management Association (IMA) has decided to update the sectors’ definitions.

The sectors have been redefined following the implementation of new methodology for calculating fund yields. The new definitions are as follows, according to the IMA:

UK Equity income

“Funds which invest at least 80% in UK equities and which aim to achieve a yield on the distributable income in excess of 110% of the FTSE All Share yield.”

UK Equity and Bond Income

“Funds which invest at least 80% of their assets in the UK, between 20% and 80% in UK fixed interest securities and between 20% and 80% in UK equities. These funds aim to have a yield in excess of 120% of the FTSE All Share Index.”