Invesco Perpetual's Read on fund size, liquidity and bank bonds

Invesco Perpetual's co-head of fixed income Paul Read has told investors he would cap the £5.7bn Corporate Bond fund if large inflows combined with low liquidity in the market caused performance to suffer.

Read (pictured left), co-manager of the fund alongside Paul Causer said liquidity in the corporate bond market tends to be "patchy" so he always tries to keep a significant capital buffer within the fund. At present this is £250m of cash and £500m in bonds with a maturity of less than one year, which Read described as "£750m of pure liquidity". "Liquidity in any corporate bond market can be pretty patchy. It will never be what it was pre-Lehmans because the banks are under funding pressure. But we have relatively sticky fund flows. "If the situation was that we were concerned about...