2020

March 09, 2020

Organizational Changes at Invesco

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the fund listed below, which is established as a segregated fund in accordance with the Insurance Companies Act (Canada).

On December 31, 2019, Nick Mustoe stepped down from his roles as lead portfolio manager on the Invesco Global Small Cap Equity Fund (the “Fund”) and Chief Investment Officer for Invesco’s Henley-based European Equities investment team. Erik Esselink replaces Mr. Mustoe as lead portfolio manager, following a three-month transition period working alongside him.  

Before becoming lead portfolio manager, Mr. Esselink managed a Europe ex-UK sleeve in the Fund. He also participated in monthly asset allocation meetings. Mr. Esselink contributes to small cap European equity research for Invesco’s European Equity and Global Core Equity teams. He has over twenty years experience in the small/mid space and has been with Invesco since 2007.

Stephanie Butcher, European equities fund manager, succeeded Mr. Mustoe as Chief Investment Officer Invesco’s Henley-based European Equities investment team at the end of 2019.

The investment strategy, process and objectives for the Fund will not change.

Our View

Nick Mustoe’s 35 years of investment experience and long tenure on the Fund will be missed. However, he did not have any stock picking responsibilities for the Fund and he did not manage any of the five regional sleeves. His responsibilities as lead portfolio manager were to make the asset allocation decisions among these sleeves. As such, there will be no changes to any of the managers for any of the sleeves. All of the managers of the sleeves were part of the asset allocation committee, but Mr. Mustoe had the final decision-making power. This has now transferred over to Mr. Esselink who will continue to manage the Europe, ex-UK sleeve. 

The GRS Investment Solutions Team met with Invesco in January to assess the changes and is comfortable with Mr. Esselink’s new role on the strategy. Although the promotion of Mr. Esselink is a change to the strategy, the committee structure provides continuity and consistency in the management of the Fund.

The GRS Investment Solutions Team will continue to monitor these changes over the upcoming quarters.

Questions?

Please contact your Sun Life Group Retirement Services representative.