Invesco Perpetual has implemented a dilution adjustment to the price of Neil Woodford's Income and High Income funds, moving to bid pricing on both portfolios after a recent surge in outflows.
The group confirmed, following redemptions, it has switched to a bid price for sellers of the funds, in order to protect existing investors. The switch to bid price is only implemented under certain circumstances when a fund has seen a set level of redemptions - usually around 5% - which could impact existing shareholders. However Invesco and other fund managers can use their discretion to implement a change even if the 5% level has not been reached. In a letter to investors it said: "Under certain circumstances, a dilution adjustment is applied to the price of Invesco Perpetual's ICV...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
