Prominent Manager Replaced at Big Emerging-Markets Fund

Justin Leverenz, one of the most well-known emerging-markets managers, has been replaced at Invesco Developing Markets ODMAX. Leverenz had led the strategy since 2007. The change became effective as of June 23, 2025. Leverenz is no longer with the firm.

The strategy, known as Invesco Developing Markets Equity in Europe, is now managed by a four-person team from Invesco’s Asian and Emerging Markets equities group based in the United Kingdom. Morningstar Manager Research has placed the strategy’s Morningstar Medalist Rating under review.

In a statement, Invesco said the change was made owing to “performance track record, portfolio risk characteristics, the team strength in terms of resources, experience, tenure, and the investment process that combines all of these elements.”

Although the strategy had suffered substantial outflows over the years, at the end of May 2025, Invesco Developing Markets was still the sixth-largest actively managed fund in the diversified emerging-markets Morningstar Category.

It had an outstanding long-term record until 2021, helped by Leverenz’s willingness to differ from index weightings and his average peer. But in recent years, that boldness occasionally backfired. Performance suffered from its overweight in Russia when that country’s invasion of Ukraine led to its stocks having to be valued at zero, and by China’s crackdown on online education firms. In 2024, the fund was overweight in Mexico, and thus was hit especially hard by the sharp declines in that country’s stock market and currency. Some individual stock choices have also hurt returns.