Neil Woodford is to leave Invesco Perpetual on 29 April to launch a rival fund management group.
Citywire AA-rated Mark Barnett will lead the Invesco Perpetual UK equity team following A-rated Woodford's (pictured) departure, assuming control of the Invesco Perpetual High Income and Invesco Perpetual Income funds.
The equity components of the Invesco Perpetual Monthly Income Plus and Invesco Distribution funds will be managed Ciaran Mallon, alongside the existing fixed income managers Paul Causer and Paul Read.
Woodford will continue to work closely alongside Barnett to ensure a smooth transition over the next six months.
The news brings the curtain down on Woodford's 25 years at the firm during which time he became the UK's leading fund manager and he feels the time is ripe to launch a new asset management firm.
'I leave the company on good terms and remain fully committed to my fund management responsibilities at Invesco Perpetual until my departure,' Woodford said.
'My decision to leave is a personal one based on my views about where I see long-term opportunities in the fund management industry. My intention is to establish a new fund management business serving institutional and retail clients as soon as possible after 29th April 2014.
'There will be no further comment at this stage. Further announcements about the new business will be made after I have left.'
Invesco Perpetual chief executive Mark Armour described working alongside Woodford as a 'privilege' and that the firm had been preparing for this moment for some time.
'We have planned for succession for many years and have built a world-class investment culture that develops and supports gifted and experienced managers,' Armour said.
'Mark Barnett is an exceptional fund manager who has the same active, value-driven investment approach and long-term focus as Neil. A key member of the UK Equities team for 17 years, Mark has a first-quartile track record over one, three and five years.
'We are confident that Mark, Ciaran and the UK Equities team will continue to do an excellent job for clients.'