Why Did Analysts Upgrade Invesco Perpetual High Income?

Following the departure of manager Neil Woodford two years ago Morningstar fund analysts downgraded the Gold Rated fund to Neutral, now the fund has been upgraded to Bronze

Daniel Vaughan, CFA 28 August, 2015 | 11:09AM
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We have high regard for Mark Barnett and his ability as an equity income manager. He’s had some challenges since taking over as manager of Invesco Perpetual High Income, but he’s rebuilt the team, added resources to cover large caps and unquoted companies, and delegated a number of responsibilities to senior team members.

We’ve also seen Barnett’s ability to reshape the portfolio to bring it more in line with how he has run portfolios in the past. While his overall investment approach is largely similar to previous managers, his own style is coming through in the portfolio construction. Barnett prefers less stock concentration at the top end of the portfolio with reduced allocation to the top 10 names and at the bottom end he favours a smaller allocation to unquoted names.

While we remain concerned about Barnett’s workload given the number of funds he is responsible for, we are seeing evidence of his ability to cope with the considerable increase in assets, warranting the fund’s move to a positive rating in July.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Invesco UK Eq High Inc UK Inc342.10 GBP1.02Rating

About Author

Daniel Vaughan, CFA

Daniel Vaughan, CFA  is a portfolio manager for Morningstar Investment Management

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