Invesco has dropped the ESG mandate on its Invesco Sustainable UK Companies fund as its manager, Tim Marshall, departs the firm.
It rebranded the UK equity fund to a sustainable strategy in 2022 when ESG investing was in the throes of popularity, but the acronym has fallen somewhat out of favour in recent years as fears of greenwashing have emerged.
John Surplice, head of EMEA equities at Invesco, said the decision to drop its sustainable focus was “a result of changing demand from clients”.
Since adopting the ESG mandate in early 2022, the fund is up 10.8%, climbing above the sector’s 7.2% return but falling short of the FTSE All Share’s 18.7% gain.
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Marshall has managed the fund since long before the ESG rebrand, taking charge in late 2016. Over his tenure, the fund’s total return of 27.8% has lagged the FTSE All Share benchmark’s 54.5% increase and the 46.2% return made by its peer group.
He latterly took on the Invesco Pan European Equity Income and Invesco Pan European Equity funds in 2020, which will be taken over in September by Martin Walker, head of UK equities at the firm.
Walker wished Marshall “the very best in his new venture” as he pursues a new career outside of fund management.
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