Investors Sell £6bn Invesco Income Funds for Woodford and M&G

Last year investors sold up their holdings in Invesco Perpetual's equity income funds to the tune of £6 billion - but it wasn't just Woodford Funds who benefitted from the cash

Emma Wall 27 January, 2015 | 2:32PM
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Over the past 12 months equity income investors have abandoned the formerly Gold Rated Invesco Perpetual Income and High Income funds in their droves. Following the exit of star manager Neil Woodford, many investors cashed in the funds which had each delivered a total return of more than 10% a year for the last decade.

The total £6 billion losses which were recorded from the two funds in 2014 were expected by Morningstar analysts, who downgraded the funds to Neutral last year to reflect the challenge new manager faced managing outflows of the open-ended structures.

The worst months for outflows were January and May – the month before Woodford launched his rival Equity Income fund. But not all of the £6 billion Invesco exiting cash landed at Woodford’s door.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Invesco UK Eq High Inc UK Inc317.26 GBP-0.88Rating
Invesco UK Equity Inc UK Inc1,258.16 GBP-0.90Rating
Janus Henderson UK Pty PAIF A Acc251.59 GBP0.01
LF Equity Income A Sterling Acc3.35 GBP0.00
M&G Optimal Income GBP A Acc229.58 GBP0.14Rating
M&G Property Portfolio GBP R Acc125.13 GBP0.00

About Author

Emma Wall  is former Senior International Editor for Morningstar