Invesco Perpetual to shift High Income fund out of equity income sector

IFAonline | 28 Mar 2014 | 12:45
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Invesco Perpetual has announced that Mark Barnett's Invesco Perpetual High Income fund will move out of the IMA Equity Income sector and into the IMA UK All Companies sector on 31 March.

It added that, due to similarities in approach, the Invesco Perpetual Income fund and the Invesco Perpetual Strategic Income fund are also likely to move into the same sector later in 2014.

The changes, Invesco said, are "due to the constraints around the three year yield requirement used as a qualifier for the IMA Equity Income sector".

The funds are among several to be effectively forced out of the sector in recent years, a trend first reported by Professional Adviser sister title Investment Week in 2012.

Mark Barnett took control of Neil Woodford's (pictured) £8.4bn Income and £13.1bn High Income funds earlier this month. Woodford is leaving the group at the end of April.

Invesco Perpetual head of UK retail Ian Trevers said: "The long-term balance between income generation and capital growth is the hallmark of successful equity income investing.

"Over many years our equity income funds have delivered a significant income stream to investors as well as substantially growing their capital (see chart). We believe that the interests of clients in these particular funds are best served by us continuing to focus on providing a growing level of income, balanced with the opportunity for capital growth over the long term. We are comfortable that these three funds will have a different IMA classification."

Trevers added: "Our clients and their advisers can be confident that this sector change will not impact the way their investments are managed".

Categories: Equities|Economics / Markets

Topics: Invesco Perpetual|Neil Woodford

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