Citywire AA-rated Mark Barnett has argued that his investment approach will enable him to manage larger sums of money, but acknowledged that it will be a challenge.
‘The honest answer is I don’t know,’ Barnett (pictured) admitted on the issue of whether he can cope with handling tens of billions of assets. He has recently taken on the £1.4 billion Edinburgh Investment Trust after Invesco retained the fund’s mandate. This will take assets under Barnett's management to more than £26 billion; at this point last year he oversaw less than £5 billion.
However, Barnett contended that his focus on long-term investments – his average holding period is 4-5 years – was ideally suited for huge funds. ‘With much larger sums of money, that is reinforced,’ he commented. 'You have to take decisions that will last and support businesses over the long term.’
He added: ‘My approach, style and philosophy lends itself to large funds. My belief is my process is scalable to larger sums of money.’
Barnett also noted that he was assisted by the broader UK equities desk in Invesco. ‘Importantly, I’m not doing it on my own,’ he remarked. He confirmed too that ‘there is some recruitment going on’ for his team.
As well as fellow fund managers, Barnett highlighted the contribution of the firm’s dealers. While the outflows from funds such as Invesco Perpetual Income and Invesco Perpetual High Income were still being handled by Neil Woodford, Barnett revealed that he viewed the process as an opportunity to reshape the portfolios.
‘My stance would be to try to fund the redemptions in a way which is unpredictable and as anonymous as possible. You don’t want to make the changes where the market sees it coming.’