By James Langton

(November 7 – 12:25) – The Financial Times says that Invesco is about to start selling its funds though brokers, following a trend started by other direct sellers in the United States.

FT reports that Invesco, which, along with Trimark Financial Corp. and AIM Funds, is owned by London-based Amvescap plc, will introduce a new group of mutual funds in December that will be sold exclusively through brokers.

This move by Invesco comes on the heels of similar moves by traditional direct sellers such as T. Rowe Price, Scudder and Strong Funds. U.S. direct sellers have suffered the same problems as Canadian firms without an active distribution arm, including dwindling sales, and difficulty retaining assets when performance slumps.

Invesco’s move is unusual in that it has been one of the top-selling fund groups in the U.S. this year, while the others have made the move under pressure. “Historically, we go direct. That’s on the surface. Our objective is that clients don’t have all the same needs, and we’re trying to serve all of our clients,” John Schroer, Invesco’s head of research, is quoted as saying.

The move is cited as yet more evidence of the long-term viability of full-service brokers in a world under siege from online and discount brokers. “There’s only so many do-it-yourselfers out there, and they’re getting uncomfortable with the myriad of choices out there,” said Jeff Keil, a fee and expense analyst at Lipper Analytics.

Although Keil cautioned that brokers still must demonstrate that they can add value for clients, because the competition is tough and growing.