However, Darius McDermott, managing director of FundCalibre, said he expects most of the 20 funds removed from the sector over the past few years will soon return.
He said: “We think this is a very sensible move that should make life easier for investors and intermediaries.
“It means that UK equity funds aiming to produce a yield can be compared fairly and easily, which has to be a good thing.
“Importantly, it also means fund managers are not being forced to chase a yield, and possibly even deviate from their investment strategy, just to remain in a sector.”
Funds in the Global Equity Income sector will also have a lower yield target and have to achieve 100% of the MSCI World Index over a rolling three-year period to hold on to their place.
IA members can now submit funds they believe meet the new sector criteria.
