Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Invesco chief executive: we're going to do just fine

Invesco chief executive: we're going to do just fine

Martin Flanagan, chief executive of Invesco, has assured investors that the group’s UK business will not be adversely affected by the departure of several team members.  

‘We anticipated that these three might leave,’ said Flanagan, referring to the triple exit announced today.

‘They were junior people and they were not contributors to Mark Barnett’s excellent long-term track record.’

Flanagan added that only one of the three, Stephen Lamacraft, managed money and noted that Barnett had also been recruiting for his team.

‘We view these departures as very manageable,’ commented Flanagan.

On the broader question of Neil Woodford’s new venture, Flanagan expressed confidence in Invesco Perpetual’s UK team.

‘We compete with some very talented organisations that have been in the market for decades with excellent resources,’ he remarked. ‘We’re going to do just fine.’

Flanagan argued too that after the second quarter, when the loss of the $13 billion (£7.7 billion) St James’s Place mandate would be booked, the outlook would become brighter. ‘The toughest stuff is behind us,’ he stated.

Flanagan accepted that the loss of some of those assets to Threadneedle had been ‘a much larger switch than we had thought’, but felt it was ‘more a strategic view than anything else’ from St James’s Place. ‘We feel we have done an exceptional job,’ he said of Invesco Perpetual’s work for the wealth manager.

In total, during the first quarter Invesco's UK equity income assets under management experienced net outflows of $3.4 billion (£2 billion) - which does not include the St James's Place loss.

That has left around $31 billion (£18.4 billion) within the UK equity income franchise, of which Invesco estimated that 99% was retail money.

Better news came on performance fees, with the UK business providing the bulk the $34 million (£20.1 million) Invesco earned in bonuses during the quarter - even after adjusting for the beneficial effect of the stronger pound.

However, $13 million (£7.7 million) of that was earned from the Edinburgh Investment Trust, which will not recur after changes to the trust's management agreement. The majority of the remainder came from funds managed by Citywire AAA-rated Barnett, Flanagan observed.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Mark Barnett
Mark Barnett
11/81 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 29.51%
Neil Woodford
Neil Woodford
8/81 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 30.45%
Stephen Lamacraft
Stephen Lamacraft
Citywire TV
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter