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Invesco Perpetual is looking to launch a Global Equity Income fund in a bid to diversify its acclaimed equity income range.

Members of Invesco have been floating the fund to IFAs and investors over recent weeks.

It would follow the firm’s £29.4m European Equity Income fund, which launched in December 2007, as well as the £6.4bn Income and £9.1bn High Income funds, run by star manager Neil Woodford.

Andrew Merricks, head of investments at Hove-based Skerritt Consultants, said he believed Invesco had identified global equity income as a major growth sector and was looking to provide investors with an alternative to Mr Woodford’s funds.

At the end of March, according to Morningstar/IMA, two funds on which he is sole manager, accounted for 51.4 per cent of Invesco's total UK retail AUM.

Mr Merricks observed it was important for Invesco to have a diversified asset base, and that the firm could position the Global Equity Income fund as an alternative for investors.

“Invesco is probably thinking that at some point the Income and Higher Income funds could underperform in the UK," he said. "Neil Woodford is currently very dependent on large-cap stocks. Eventually the tide will turn back towards small caps and his funds could be too large to adjust.”

Figures from Morningstar show Mr Woodford’s fund took £2.9bn net inflows over one year to 1 February, without which the company’s assets under management would have shrunk by £170m.

Kevin Tooze, managing director at Essex-based IFA Equity Partners, agreed it made sense for Invesco to diversify their retail exposure outside of Mr Woodford's funds. But he said the company should not intentionally reroute assets away from the existing portfolios.

"Mr Woodford is responsible for millions coming into the company. I don't think it's necessarily wise to divert attention to a new bright idea."

Other companies currently occupying the global equity income space include Credit Suisse, JPMorgan Asset Management, Newton Investment Management, Lazard Asset Management, Schroder Investment Management and Threadneedle. M&G Investments also has a global equity income fund in the pipeline.

A potential launch by Invesco could also bring the IMA one step closer to creating a Global Equity Income sector.

Graham Duce, co-head of multi-manager at Credit Suisse, welcomed the possibility of a fund launch from Invesco in this area.

"In view of their strong income franchise, it certainly makes sense," he said. "There are some big names entering the global equity income space. It's an area we're likely to invest in."

Invesco declined to comment.