London IFA Master Adviser has criticised Invesco Perpetual for pumping money into loss-making national IFA Millfield Group.
The firm has suspended all dealings with Invesco Perpetual, saying it will not place any of its clients' money in Invesco funds as it cannot trust an investment process which views Millfield as a solid investment.
Misys member Master Adviser has 14 RIs and had a turnover of £1.8m in the last financial year.
The attack follows Invesco's star fund manager Neil Woodford's decision to pump £10.5m into Millfield in July.
According to results published last month, Millfield made a loss of £11.5m during the year to March 31, 2003, up from a loss of £7.1m in the previous year.
Brodie says: “I am currently confused by the support of such firms by investment funds and we would not invest in such funds unless we were absolutely clear about the decisions the managers are making. All we seek is someone to tell us the rationale of the investment decisions.”
Millfield Group chief executive Paul Tebbutt says: “What is he saying – that he does not believe in the IFA sector? He does not believe in the sector he works in. We could use fewer IFAs like him then.”
Invesco head of corporate communications Jane Drew says: “Neil Woodford is a respected fund manager with an impressive track record and we are disappointed by Master Adviser's reaction to his decision.”