The Investment Management Association (IMA) has removed funds run by JP Morgan Asset Management (JPMAM) and Marlborough Fund Managers from the UK equity income sector after they failed to hit specified income targets.
The £130 million JPM UK Strategic Equity Income fund and the £23 million Marlborough UK Income and Growth fund have been kicked out for failing to meet the requirements of the sector.
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As the funds failed to meet the 110% average yield for each three-year rolling period, the JPM fund has been moved to the UK All Companies sector and Marlborough fund was moved to the unclassified sector.
The JPMorgan fund, which is run by Ian Butler, Ben Stapley and Thomas Buckingham, achieved a 3.6% yield at the end of its fund year, versus the 3.7 % recorded on FTSE All Share yield for its year end.
The Marlborough fund, which is run by Geoff Hitchin and Nicholas Cooling, has scored 2.9% versus 3.6% on the FTSE All Share Yield for its year end.
IMA said: "To ensure compliance with the intended 110 per cent yield, funds in the sector will be tested over three-year rolling periods by taking a simple average of the yield figure achieved for each fund at its year end."
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By GlobalData
