Equities  

Mustoe gives up Invesco bond fund as group hires UK analyst

Invesco Perpetual has said Nick Mustoe is stepping back from managing the £82m Invesco Perpetual Global Financial Capital fund as it announced an analyst hire for its UK team now headed by Mark Barnett.

Mr Mustoe will remain as manager on a range of other Invesco funds, including the £550m Global Equity Income fund, as well as his role as chief investment officer.

But he is stepping back as co-manager on the Global Financial Capital fund and Invesco has promoted Julien Eberhardt to be a deputy manager on the fund.

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Invesco’s fixed income duo Paul Causer and Paul Read will continue as co-managers on the fund.

The firm said that Mr Eberhardt promotion was “in recognition of his growing contribution to the fixed income team and his role, as an analyst, in the success of the fund”.

Mr Eberhardt had joined Invesco in 2008 from Moody’s as a fixed interest credit analyst.

Elsewhere, Fred Bouverat joins from Numis Securities, where he was an associate director for equities, and will look after the UK equity funds’ holdings in micro-cap unlisted companies, built up by previous manager Neil Woodford.

Mr Woodford is set to leave Invesco at the end of next month but Mr Barnett took over management of the funds ahead of schedule earlier this month.

Morningstar has placed both the Income and High Income funds under review following the change of manager.

Analyst Chetan Modi said there were “some areas of uncertainty” surrounding the funds, including Mr Barnett’s lack of experience running the huge level of assets in the funds he has taken on. Mr Modi added that “we expect that [Mr Barnett] will be unable to invest in mid-caps to the same extent that he has in the Invesco Perpetual UK Strategic Income fund”.

“There could also be further outflows, which could restrict his ability to execute his strategy successfully,” Mr Modi said. “Moreover, Neil Woodford was instrumental in shaping the UK equity team’s macroeconomic view and the impact of his departure is still unknown.

“Until we meet with Barnett as manager of the fund and get some clarity on those uncertainties, we feel it prudent to maintain the fund under review.”

At the time Mr Woodford’s resignation was announced Invesco Perpetual highlighted the fact the two managers had worked together for more than 17 years.