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Invesco defends Millfield pick as Dampier joins furore

Invesco Perpetual and Millfield Group have defended star fund manager Neil Woodford&#39s decision to pump millions of pounds into the loss-making IFA following the intervention of Hargreaves Lansdown&#39s Mark Dampier.

Misys member Master Adviser suspended all dealings with Invesco last week after Woodford&#39s decision to inject £10.5m into Millfield despite well documented financial difficulties. Invesco said it was disappointed with the move while Millfield chief executive Paul Tebbutt argued that the decision was an attack on the IFA sector.

But, in a letter to Money Marketing, Hargreaves Lansdown head of research Mark Dampier dismisses Tebbutt&#39s suggestion and he backs Master Adviser director Doug Brodie in questioning Woodford&#39s investment. He says that “nothing could be further from the truth” than Tebbutt&#39s suggestion that Master Adviser was criticising IFAs as a whole and that Brodie was asking a simple question that many IFAs want answered.

He says: “All Mr Brodie is asking is why money is going into a loss-making company. This does not seem an unreasonable question. It is a simple question – can&#39t we have a simple answer?” Invesco chief executive Mike Webb says: “Neil does not necessarily invest in a company because it is profit-making. It could be a turn-round situation.

“It is difficult to understand why an IFA would remove our funds from their buy list on the basis of one stockpick.”

Tebbutt says: “We have more companies invested in us than any other of our type on Aim. There is research from firms such as Durlacher showing that we should make a profit this year.”


Outside edge

It was not so long ago that fund supermarkets, being the big thing in America, would be the next big thing in the UK and, although there are detractors, they have had considerable success already in the UK marketplace. Wrap accounts are now the subject of first-mover advantage as companies rush to develop distribution channels. […]

Van der Klugt to retire at Schroder

Humphrey van der Klugt, manager of the flagship Schroder UK equity and Schroder income funds,is to retire in January after nearly 22 years with the group. The £621m equity fund will be taken over by senior UK equity manager Christopher Metcalfe while the £475m income fund will be run by Nick Purves, Schroders&#39 senior equity […]

Sofa says the worst is over in PI cover crisis

The cost of professional indemnity insurance for IFAs has peaked, with the tide starting to turn for practices still struggling to afford cover, according to Sofa. Managing director Brian Lawless says he thinks the worst is over for advisers and that PI premiums, which in many cases have doubled over the last 12 months, look […]

MM rallies IFAs to find solution

Following industrywide calls for the FSA to provide IFAs with a workable definition of misselling, Money Marketing is launching a forum for advisers to rally together and lobby the regulator to make this a priority issue. The industry has been unimpressed by the regulator&#39s attempts so far to ease the situation. Its much anticipated publication […]


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