Invesco Pertpetual has made 15 of its fund managers redundant in the latest cost cutting move by inv...
Invesco Pertpetual has made 15 of its fund managers redundant in the latest cost cutting move by investment management houses.
Cuts this week also come from Canada Life, Prudential and Fidelity's US operation, adding to those announced last week by Aberdeen, Axa and Schroders.
Invesco Perpetual's move is a bid to turn around poor performance in its pan-European and global equities offerings. Eight of the fund managers were sector specialists located in the New York. The six based in the UK will be replaced, according to Mike Webb, chief executive at Invesco Perpetual.
'The change is not about cost cutting, it is about achieving better performance,' Webb said.
UK managers that have been made redundant include Robert Churchlow, head of UK equities, institutional, and Nick Ford, head of European equities, institutional. Others departing from the European desk are Steve Chamberlain, Ben Legge and Anand Sunderji.
Global equity managers Richard Beggs, lead manager of the £100m Invesco Perpetual International Growth fund, and Francesco Bertoni have also lost their jobs.
Habib Subjally, who joined from Merrill Lynch in May 2002, will become lead manager on International Growth as well as head of global equities.
As part of the restructure, Bob Yerbury is named chief investment officer for Invesco UK, a role covering institutional business as well as the Invesco Perpetual retail operation.
Graham Kitchen is named head of investment, pan-European equities in London, while Neil Woodford becomes head of investment, Henley.
In the US, Fidelity is to cut 10% of its workforce, while in the UK, Canada Life is closing its 198-strong direct sales force and the Prudential is relocating its Reading call centre to Bombay in the next two years with 850 job losses.
Aberdeen Asset Management, which cut eight fund managers last week including its head of UK equities and lead US fund manager, has reduced bonuses for the majority of its directors this year.
Directors will take pay cuts of up to 33% in a bid to reduce costs by around 12% over the coming 12 months.
A number of executive directors, including investment trust head Chris Fishwick and chief executive Martin Gilbert, will also have the payment of the second instalment of bonuses earned last year deferred for at least a year.
Fishwick is due £1.4m as a final payment of last year's bonus, while Gilbert is due to receive a deferred bonus of £650,000.
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