Invesco Fixed Income Duo to Depart

Paul Causer and Paul Read are to retire from Invesco, after 26 years working together

Holly Black 16 June, 2021 | 1:59PM
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Investment duo Paul Causer and Paul Read are to retire from Invesco after 26 years of working together. The fund managers are co-heads of the firm’s Henley Fixed Interest team and run a number of funds including the Silver-rated Invesco Corporate Bond (UK) and Neutral-rated Invesco Global Income fund.

Causer and Read will hand over their leadership responsibilities to Michael Matthews and Thomas Moore, and will leave the business on January 1, 2022.

Invesco’s fixed interest team has grown from three to 28 people under Causer and Read. The pair say: “This has been a very big decision for us. However, we feel that in Michael and Thomas we have two excellent leaders as well as a broad and deep team of people that is ready to take on the full responsibilities to serve our clients and take the team forward for many years to come.”

What to do When a Fund Manager Leaves

Investors in any of the funds run by the managers may be wondering what this means for them. We have previously looked at what to do when your fund manager leaves the business. Some commentators have pointed out that the long and well-planned handover should mean this departure is not cause for alarm. 

Evangelia Gkeka, senior analyst at Morningstar, says Invesco has been planning for Causer and Read’s potential retirement for several years, with a clear succession plan in place. However, she adds: “We’re perhaps surprised that it is happening in December, but the pair have gradually been relinquishing some of the responsibilities and have added co-managers to several strategies.”

Michael Matthews and Tom Hemmant, for example, joined the Invesco Corporate Bond Fund (UK) in 2013 and 2020 respectively alongside Causer. Julian Eberhardt and Tom Hemmant were added to the Invesco Euro Corporate Bond fund in 2016 and 2020 respectively.

Gkeka says: “We view the fact that they have been heavily involved in these strategies over the year and are familiar with the investment processes as a positive in terms of continuity.” She points out that the team-based culture is another positive, reducing key man risk.

“Going forward, however, we will need to monitor how the funds are positioned as some of the key thinking emanated from Causer and Read,” Gkeka adds.

Invesco said there were no changes planned to the team’s investment philosophy as a result of the managers’ departure and the focus would continue to be “rooted in quality fundamental research”.

Thomas Moore currently runs the Invesco High Yield UK and Invesco Pan European High Income funds, which are both rated Neutral by Morningstar analysts. The latter has a 5-star performance rating, however, and has delivered annualised returns of 5.75% over five years.

Michael Matthews already co-manages the Invesco Corporate Bond (UK) fund and also leads the Invesco Sterling Bond fund, which has a Morningstar Analyst Rating of Silver.

 

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk