Invesco loses Woodford

Invesco has announced that fund manager Neil Woodford, the largest British fund manager with £33bn under management, will be leaving the firm in six months’ time after 25 years with the company.

The move has surprised investors in the firm, which maintains several sizeable positions in UK tech transfer. Invesco is the largest shareholder in Imperial College London’s tech transfer unit Imperial Innovations and Newcastle spin-out e-Therapeutics, amongst other investments. It also recently contributed to the £50m Cambridge Innovation Capital fund announced this month.

There has been some concern that investors will follow Woodford, who plans to set up a fund management business, out of Invesco.

Nick Mustoe, chief investment officer at Invesco, told news provider the Financial Times: “We are very confident that the portfolios are highly liquid with a large proportion of large-cap stocks. There is a small proportion of the funds invested in unquoted stocks [around 4 per cent of the assets], a number of which are likely to reach IPO [a stock market listing] in the next couple of years. We are in no rush to attempt to realise these holdings as we believe it is in clients’ best interest that we seek the best possible returns.”

Commenting on his resignation, Woodford said: “I leave the company on good terms and remain fully committed to my fund management responsibilities at Invesco Perpetual until my departure. The Invesco Perpetual High Income Fund, Invesco Perpetual Income Fund and other client mandates will be transitioned into the hands of my long-standing, experienced colleagues. I wish my colleagues all the best for the future.”

He added: “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.”