The IMA said High Income “meets the criteria for the IMA UK All Companies sector and no longer meets the criteria for the IMA UK Equity Income sector”.
However, Alistair Cunningham, chartered financial planner at Wingate Financial Planning, said the High Income fund was one he liked and its sector location “doesn’t worry me”.
“It’s certainly not a positive [to be forced to move sectors] though and arguably it could put some people off,” he said.
Cause for concern?
Advisers have raised concerns in the wake of the Invesco move. Some, such as Rowley Turton’s Scott Gallacher said it was “terrible timing” amid Neil Woodford’s departure, while Aurora Financial Planning’s Aj Somal said advisers might look to funds that meet the IMA’s yield requirements. But Invesco’s head of UK retail Ian Trevers said clients were “best served” by the funds maintaining their investment style.