Morningstar OBSR places Woodford funds under review

15th October 2013

Morningstar OBSR has placed the Invesco Perpetual funds run by Neil Woodford under review. They have also placed the Edinburgh Investment Trust also run by Woodford under review. The procedure is common practice during fund management changes.

The notes are below –

Invesco Perpetual 
Following the announcement that Neil Woodford will leave Invesco Perpetual in April 2014, Morningstar OBSR has placed the Morningstar OBSR Analyst Ratings of the following funds Under Review:

Invesco Perpetual Income
Invesco Perpetual High Income
Invesco Perpetual Monthly Income Plus
Invesco Perpetual Distribution

All four funds previously held a Morningstar OBSR Analyst Rating™ of Gold.

Mark Barnett, who currently manages the Invesco Perpetual Strategic Income fund, is set to take over the Invesco Perpetual Income and High Income funds in April 2014. Ciaran Mallon, who currently manages the Invesco Perpetual Income and Growth fund, is set to take over Neil Woodford’s portion of the Invesco Perpetual Monthly Income Plus and Invesco Perpetual Distribution funds with immediate effect. Mr Barnett and Mr Mallon are both established members of Invesco Perpetual’s UK Equity team.

Morningstar OBSR analysts plan to meet with the fund managers shortly to assess their future plans for the funds.

Edinburgh Investment Trust
Following the announcement that Neil Woodford will leave Invesco Perpetual in April 2014, Morningstar has placed the Morningstar Analyst Rating of the Edinburgh Investment Trust Under Review. The trust previously held a Morningstar Analyst Rating™ of Gold. The board has yet to confirm who they will appoint as the new manager in April 2014, and given this uncertainty, Morningstar has placed the rating Under Review. When the board announces the appointment of a new investment manager, Morningstar’s closed-end fund analysts will meet with them to discuss their plans for the trust.

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