Boston, MA 10/17/2013 (wallstreetpr) – Neil Woodford, the top UK Invesco Ltd. (NYSE:IVZ) fund manager is leaving the company after nearly 25 years, leaving behind a larger-than-life legacy. Mark Barnett will take over from him at the Invesco Perpetual. But news of the exit of this long-serving and variously talented manager immediately set off a wave of decline of IVZ share value at the New York Securities Exchange.
The company lost more than 6% of its share value immediately reports about Woodford’s exit reached the market. And analysts have warned that there could be more damaging effects for the funds as Woodford leave the scene. The out going manager is expected to remain in the company until after six months. Perhaps during this transition period he might have an overflow to deal with as investors and clients seek his ear.
What complicates the picture at Invesco Perpetual is that the outgoing fund manager Woodford is leaving to set up his own investment outfit. For the kind of a man he is, Woodford might take away a significant number of investors at IVZ to his own funds house.
The fact that Woodford has decided to cut short a decorated career at IVZ for his own business demonstrates underlying discord at IVZ. Perhaps a difference over strategy may be playing out between Invesco Perpetual other senior managers on one side and Woodford on another.
It is not just IVZ that has started feeling the heat of Woodford’s eminent exit, but even the companies in which Woodford had established shareholding such as BAE Systems, Capita and Drax Group.
Barnett is not a lesser manager, but Woodford as become the face of Invesco Perpetual, and this is an image that is likely shadow the new comer. Even as the company’s CEO described Barnett as an exceptional fund manager, just the breed of Neil, the market has already got into skeptical mode, and the shares are falling in value as investor confidence wanes.
As the UK fund manager, Woodford was in charge of £33 billion which is almost half of Invesco Perpetuals total fund of £70 billion. This fund dwarfs what any other British fund manager.
