FE Select 100 upgrades Barnett’s Invesco Income fund

Research firm FE has upgraded the £6.7bn Invesco Perpetual Income fund to ‘buy’ on its FE Select 100 list of funds after previously downgrading it ‘hold’ following the departure of star manager Neil Woodford.

The FE Select 100 list is used as a basis for constructing the firm’s suite of fifteen risk-rated model portfolios, known as the FE Select Portfolios.

Concens over what impact outflows sparked by the departure of Neil Woodford from Invesco Perpetual earlier this year would have on the Invesco Perpetual Income fund drove the decision to switch the fund from ‘buy’ to ‘hold’, according to FE Research.

“The Invesco Perpetual Income fund has come under considerable scrutiny since the departure of Neil Woodford and FE Research downgraded this previous firm-favourite to a “hold” rating over fears that fund outflows might impact liquidity,” it says.

But FE Research has now opted to upgrade the fund, now run by Mark Barnett (pictured), to ‘buy’ again based on the belief that Barnett ”will be as successful as his predecessor.”

It adds: “This, however, does not appear to have affected Mark Barnett’s ability to manage the fund effectively and FE Research has expressed confidence that he will be as successful as his predecessor.  The fund has therefore had its “buy” rating reinstated.”