Russell Investment Group has terminated its Invesco mandate in the wake of last month's resignation of two high-profile Invesco managers.
The mandate will instead be split between two existing managers within its Russell Australian Shares Fund, Orion and MIR.
Long-time head of Invesco's Australian equities team Rohan Walsh and portfolio manager Luke Sinclair left the fund in March to join boutique fund Bell Asset Management.
Their departures have had a deep impact on the status of Invesco and resulted in fund researcher downgrades and mandate terminations.
In March, research house van Eyk removed Invesco's funds from its multi-manager Blueprint Series, barely two weeks after it had been added.
Fellow research house Morningstar also downgraded Invesco's Wholesale Australian Share Fund and Australian Share Fund from Recommended to Avoid.
"The departures of Walsh and Sinclair, the long-term leaders of this strategy and to whom most of the performance credentials can be attributed, brings into question Invesco's ability to generate alpha for clients going forward. Invesco's team is now thin on the ground," Morningstar analyst Tim Murphy said at the time.
Invesco chief executive Mick O'Brien will take the helm as temporary head of the fund's Australian equities team until a replacement can be found.
Three dedicated fund team members remain.
