Marlborough and JPM funds kicked out of UK Equity Income sector


The £130m JPM UK Strategic Equity Income fund and the £23m Marlborough UK Income and Growth fund have been removed from the UK Equity Income sector by the Investment Management Association.

In its most recent yield spreadsheet, it was revealed that both funds had failed the three year test for yield and had been moved.

In its criteria for inclusion in the sector, the IMA says: “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.

“Funds that fail to meet the 110 per cent average yield for each three-year rolling period will be removed from the sector.”

As a result the JPM UK Strategic Equity Income fund has been moved to the UK All Companies sector, with the Marlborough UK Income and Growth trust being moved to the Unclassified sector.

Co-managed by Ben Stapley, Thomas Buckingham and Ian Butler, JPM UK Strategic Equity Income acheived a 3.6 per cent yield at the end of its fund year, versus the 3.7 per cent recorded needed to meet 110 per cent of FTSE All Share yield.

Meanwhile Marlborough UK Income and Growth – co-managed by Geoff Hitchin and Nicholas Cooling – scored 2.9 per cent versus 3.6 per cent on the FTSE All Share Yield for its year end.

The funds’ ejection follows St James’s Place Equity Income Unit Trust, which was kicked out of the sector in January 2013 for failing to meet the same criteria.