The Invesco European High Income fund is set to close, following a failed proposal to merge it into the firm's Global Income fund.
In an investor letter seen by Investment Week, Invesco said it believed the fund "is no longer commercially viable due to its low assets under management and that any potential for meaningful growth is highly unlikely". The letter added the fund will stop accepting new investments into the fund from 8 June.
The proposed merger, which was announced in January, was voted down by shareholders. At the time, Invesco argued that shareholders would benefit from a broader universe of equities and debt, while keeping the investment objective, process and style the same.
Both funds had been managed by Paul Causer and Paul Read along with Stephen Anness, Alexandra Ivanova and Stuart Edwards for the global fund. Last year, Causer and Read announced they were leaving their roles, handing over their responsibilities to Michael Matthews and Thomas Moore at the end of 2021.
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An Invesco spokesperson said: "Following a strategic review of our fund range, Invesco wrote to shareholders proposing a merger of two of our products with a similar offering.
"The proposal to merge the Invesco European High Income fund (UK) into the Invesco Global Income fund (UK) did not receive sufficient votes in favour and the merger will not be going ahead. Shareholders were informed at the time of the proposal that the fund would be terminated should insufficient votes be received.
"So, following regulatory approval the Invesco European High Income Fund (UK) will be closing on 19 August 2022."
