City File: Invesco MIM

INVESCO MIM, the fund management group until recently run by Lord Stevens, is reckoned a good recovery play by BZW. The broker forecasts pre- tax profits for 1992 of pounds 16.5m when Invesco reports next month. And with past write-offs behind it, the firm should post a huge rise to pounds 42m next year. There is no doubt that Invesco, which makes good profits in the US, is a good bet on an even stronger dollar.

But doubts must remain. Invesco insists it acted properly in its role in the Maxwell affair and has therefore made no provision for the writ for pounds 11m from Mirror Group pension trustees. Charles Brady, the new man in charge, dominates the group and may be in a position to dictate terms should he be tempted to take back the American division. The Hong Kong group Peregrine has a 20 per cent- plus holding and may be after the Far East operation. Therefore, outside shareholders may not benefit as much as they might hope should a carve-up eventually take place. Caution is in order, even with Invesco at just 97p.