It will come into effect on 1 January, 2012, and follows a review the organisation carried out in July this year into those funds that generate an income from equity sources outside the UK. Funds in the new sector will have to be diversified by geographic region and have at least 80% of their assets in ex-UK equities.
The income definition will include funds that “intend to achieve a historic yield on the distributable income in excess of 110% of the MSCI World Index yield at the fund’s year end”.
The IMA is currently looking at a similar European Equity Income sector although as it stands there are less than the ten funds it needs to start up such a grouping.
In its list of rules and regulations, the IMA confirmed that any global emerging market funds that also have an income bias will be excluded.
