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Invesco Perpetual Income becomes overdrawn after £500m outflow

by Robert St George on May 22, 2014 at 11:35

Invesco Perpetual Income becomes overdrawn after £500m outflow

The Invesco Perpetual Income fund has fallen below £8 billion in size for the first time in more than three years.

The fund, now managed by Citywire AAA-rated Mark Barnett, closed April with £7.8 billion of assets – its lowest level since it held £7.9 billion in January 2011.

It also represents a decline of £495 million from the amount recorded at the end of March. That means that the fund has now dwindled by £2.8 billion since former manager Neil Woodford announced his departure from the group last year.

Invesco Perpetual Income is furthermore now running a negative cash position. As at the end of April, the fund had cash holdings of minus £5.3 million.

For comparison, the Invesco Perpetual High Income fund – which has not suffered redemptions to the same degree – has a positive cash position of around £54 million.

Despite the outflows from Invesco Perpetual Income, investment performance has been strong under Barnett (pictured). While still lagging its peer group on a one-year view, with a return of 12.1% compared with 13.5%, it is now ahead over both three and six months. Over the past six months, the fund has returned 5.5% against a sector average of 3.4%.

Invesco Perpetual declined to comment.

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