The Investment Management Association (IMA) intends to launch a global equity (EQ) income sector, comprising funds with a minimum of 80 per cent of assets in international stocks, at the start of next year, Money Marketing reports. The plan is a result of the trade organization’s re-evaluation of funds in July.
For a fund to be included in the sector, it must be geographically diversified and aim at a historic yield on distributable income of more than 110 percent of the MSCI World index yield at the vehicle’s year ending. The body is also considering setting up an European Equity Income sector but as of now there are not enough vehicles to do so.
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