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Invesco Perpetual's Woodford in specie dilemma

by Danielle Levy on Feb 13, 2014 at 15:25

Jason Hollands, managing director of Bestinvest, does not share the same view. 'It would surprise me why any group would agree to do that, as you are opening up a Pandora’s box.'

Darius McDermott of Chelsea Financial Services, echoes Hollands' sentiments.'I can fully understand why Invesco Perpetual would not offer an in specie transfer. You don’t raise assets to give them away.'

The Invesco Perpetual income fund has been on Chelsea's buy list for over 20 years and McDermott anticipates that a lot of the firm's clients will follow Woodford to his new venture. Nonetheless, he expects a lot of money in the Invesco funds currently sits in ISAs, so tax liabilities may not prove a big concern.

When asked if Invesco would consider offering the in specie transfer, the firm simply said: 'Mark Barnett is an exceptional fund manager and has been a key member of the Invesco Perpetual UK Equities team for 17 years. Client and market reaction to our announcement last October has been highly supportive of Mark. As previously stated he will take over management of the High Income and Income funds from Neil Woodford as at the end of April.'

In December Mark Dampier, head of research at Hargreaves Lansdown, asked Invesco whether they would provide a transfer window to move into Woodford's new proposition.

Questions remain over whether HMRC would allow the transfer, although it should be noted that the Inland Revenue did allow transfers from Rathbone Special Situations to New Star Select Opportunities after Patrick Evershed moved from Rathbones to New Star 11 years ago.

Woodford, who runs more assets under management than any other UK manager, is setting up his new business in May, in conjunction with Oakley Capital, an investment firm founded by entrepreneur Peter Dubens.

Mark Barnett will assume sole control of the £9.4 billion Income fund fund and £13.6 billion High Income fund on Woodford's exit.

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2 comments so far. Why not have your say?

Willie Christie

Feb 13, 2014 at 16:53

I cannot believe that there is a precedence for the HMRC to permit such a waiver. Do they try to curry favour with erstwhile CGT-payers?

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Whatever the weather

Feb 14, 2014 at 10:25

You may not believe it but it still happened.

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