an 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 under the Insurance Companies Act (Canada).
Erik Esselink, lead Portfolio Manager (PM) on the Invesco Global Small Cap fund (the fund), left the firm on July 31, 2023. Esselink was responsible for making allocation decisions to five geographic component portfolios, which are combined to create the fund. He also managed the Continental European component portfolio. Invesco explained Esselink’s departure as a personal decision to relocate to another country with his family and take time away from the investment industry. He was with Invesco for 16 years.
Invesco hired Michael Oliveros and appointed him the new lead PM on the strategy. Oliveros joined the firm on July 3, 2023. He took over as the sole lead PM on August 1, 2023, after a period overlapping with Esselink. Oliveros also took over the Continental Europe component portfolio (along with co-PM James Matthews), which accounted for 17% of the fund in Q2 2023. There are no changes to the PMs of the remaining components. The five regional components include US, Continental Europe, UK, Asia and EM, and Japan.
Michael Oliveros has nearly 20 years of experience in global equities. Invesco indicated that he was previously lead PM on the Municipal and General (M&G) Pan-European Smaller Companies Fund since 2015. He had been with M&G since 2011 and managed the research team for their Sustain and Impact team. Prior to M&G, he worked at Credit Suisse HOLT. He has also worked in mergers and acquisitions and corporate consulting.
Invesco noted that they initially looked for an internal candidate to succeed Esselink, but ultimately decided on an external candidate with experience in European small cap, as well as global equities. Invesco believes Oliveros will be a good fit culturally and with the firm’s investment process. Invesco was also impressed with his past performance results at M&G. Invesco believes a one-month transition time is appropriate.
GRS Investment Solutions View:
We met with Invesco in July 2023, after Oliveros joined. His acumen as an equity professional is not in question; however, we find it interesting that Invesco appointed a newly-hired employee as the lead PM. It’s particularly interesting considering this fund already has PMs of the regional components, who are already integrated into the firm. Michael Oliveros’ experience is a welcome addition; however, like any experienced investment professional hire, it will be necessary to monitor how well he integrates into a new firm, culture, and investment process with new colleagues.
Sun Life takes comfort in the fact that Oliveros will continue to be supported by the same resources including the co-PM on the European equity component.
We’ve placed the fund on our Watch List under ‘Additional Monitoring’ (the least severe category). We’ll continue to monitor Oliveros’ integration, as well as the stability of the existing team and will provide further updates as needed.
Do you have to take any action?
You and your members don’t have to take any action as a result of these changes.
Please contact your Sun Life Group Retirement Services representative.