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Invesco&#39s caution on UK fund seen as bid to avoid Euro growth repeat

Invesco Perpetual is calling on IFAs not to treat its top-performing UK aggressive fund as a core holding in a bid to avoid the problems that beset its giant European growth fund.

The European fund, now on the sell lists of many IFAs, was one of the star performers of the 1990s under Rory Powe, reaching £3bn in 1999. But its high exposure to technology stocks hit it hard when the TMT bubble burst, leaving investors – many of whom had been sold the fund as a core holding – out of pocket. It has now shrunk to £915m in size.

In what IFAs believe is a clear bid to pre-empt another debacle, Invesco is asking advisers to recommend or market the aggressive fund as a non-mainstream holding des-pite the fact that it is still only £21m in size. It says its volatility and concentrated number of stocks preclude it from comprising more than a small percentage of most portfolios.

Chief executive Mike Webb says: “Fund manager Ed Burke goes out of his way to make clear the fund is not a core holding. When it has been performing as well as it has, we are mindful that people understand it is a volatile fund.”

Whitechurch Securities investment director Gavin Haynes says: “Most discount brokers and marketing houses made the European growth fund out to be a core holding. Invesco may have learnt to rein in this sort of thing much earlier.”


Premier Mortgage launches website

Mortgage broker Premier Mortgage Management has announced the launch of a new website in an effort to help intermediaries prepare for the onset of regulation next October.The website offers a referral service to IFA businesses looking to send mortgage business elsewhere so they can avoid the hassle of having to comply with FSA regulation.PMM managing […]

Buy to let viable alternative to pensions says UCB

Rising numbers of people are viewing investment in property as a viable long-term alternative to pensions and other investments, according to specialist lender UCB Home Loans.A report by the Nationwide subsidiary reveals that buy-to-let activity remains buoyant in areas including Bristol, Northampton, Leeds, Manchester and Newcastle. UCB says this indicates how far attitudes towards renting […]

Advantage to run network for packagers

Sub-prime packager Advantage Mortgage Services is starting a national network for mortgage packagers.The network will provide a range of products for members along with mortgage processing software and a training and development programme.Advantage has already signed up one packager, Derby-based Future Finance, and hopes that 50 others will join. It says it has 20 further […]

Inside edge

Anyone with a mortgage would vote for the Bank of England&#39s base rate reductions to be fully passed on by lenders to borrowers but this could be a shortsighted demand with negative consequences in terms of the long-term viability of a lender&#39s products. As such, it could threaten product innovation and consumer choice in the […]

Powerful estate planning tools ignored or forgotten by wealthy Brits

Canada Life IHT Survey 2016 Only a quarter of wealthy Brits have sought professional estate planning advice to ensure their families don’t pay more tax than required More than a quarter don’t even have a will and just one in five have gifted money Many say they do not need these tools but families would […]


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