IMA creates Global Equity Income sector

The IMA will create a Global Equity Income sector with effect from 1 January 2012 and is looking at a European Equity Income sector.

The sector will accommodate funds that place at least 80% of their assets in global equity.

The IMA is also exploring the possibility of creating a European Equity Income sector, but said at present there are an insufficient number of European Equity Income funds to populate such a sector.

An IMA spokeswoman said the organisation requires at least 10 eligible funds before it is able to create a new sector.

The moves follow a review of funds in existing IMA sectors that take income from non-UK equity, launched in July 2011 and a consultation with members.

Annually, at the fund's year end, each fund in the sector must achieve a yield of not less than 90% of the MSCI World Index or else be removed.

To be eligible for inclusion funds must be diversified by geographic region. Funds which qualify for the IMA Global Emerging Markets sector but also have an income bias will be excluded from the new sector.