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Woodford funds cut from FE Adviser Fund Index

Advisers have moved out of Neil Woodford’s Invesco Perpetual Income and High Income funds.

The FE Adviser Fund Index has dropped Invesco Perpetual’s £23bn flagship UK equity income funds from its model portfolios.

FE collects data twice a year on the investment allocations made by a panel of 22 advisers and wealth managers to show how asset allocations are changing across the market. 

The latest AFI update shows advisers have removed clients’ investments from the Invesco Perpetual Income and High Income funds.

Data from FE Analytics shows £2.58bn has left the two funds since Invesco announced Woodford’s departure from the company in October. Woodford will leave Invesco on 29 April to set up a new venture with Oakley Capital.

The Invesco Perpetual UK Strategic Income fund, run by Woodford’s successor Mark Barnett, remains on the list.

Whitechurch Securities head of research Ben Willis says there are “uncertainties and question marks” over how Barnett will deal with the sector’s largest retail funds as well as his existing mandates.

He believes the Invesco sales team has dealt well with redemptions so far, but it is unclear whether they will prevent further exits from affecting sales.

He says Whitechurch decided to get out of the funds as a precaution, and that research suggested Barnett’s £397.5m UK Strategic Income was most similar for volatility, drawdown and profile.

Michael Clark’s £722m Fidelity MoneyBuilder Dividend and John McClure’s £519.2m Unicorn UK Income funds have been added to the list.

The £185.4m Invesco Perpetual Global Targeted Returns has also made it onto the list. The fund launched in September after Invesco hired the former Standard Life Investments GARs team, who joined Invesco in January 2013.


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