View the article online at http://citywire.co.uk/money/article/a744646
St James's Place shifts £3.5bn funds to Neil Woodford
The St James's Place financial sales force deals a blow to Invesco Perpetual as it tries to cope without former star Neil Woodford.
The St James's Place financial sales force has dealt a further blow to fund manager Invesco Perpetual as it tries to cope with life without its former star employee Neil Woodford.
St James' Place has decided to follow Woodford and switch £3.5 billion in three funds to his new firm at Oakley Capital.
Woodford has run the St James' UK Equity , UK High Income and Income funds for much of his career and it was always likely they would follow him to his new venture. However, Invesco Perpetual would have hoped they could have stayed with Woodford's successor Mark Barnett, who is also taking on his giant Income and High Income funds.
The loss of the business comes on top of a steadly outflow of money by investors and advisers in Invesco Perpetual's flagship income funds since Woodford announced his departure last year. In New York shares in its Invesco's parent company fell nearly 3%, leaving them flat for the year.
Oakely Capital's head of retail Craig Newman said: 'We are delighted that St James’s Place wants Neil to carry on managing money on behalf of its clients, ensuring that their long-term relationship continues. It is a huge endorsement, not only of Neil, but also of Woodford Investment Management, which is currently seeking regulatory approval.'
In another setback SJP said it would also drop Invesco Perpetual from the £3.2 billion Strategic Managed fund and replace it with rival Threadneedle. A £700 million Global Equity Income fund also goes to Manulife Asset Management.
Founded by Lord Weinberg, St James' Place pioneered the use by insurers of external fund managers. Today it announced it would put £5 million into a new Emerging Markets Equity fund to be managed by Wasatch Advisors of the US.
St James' Place chief investment officer Chris Ralph said: 'This round of appointments and fund changes is the most significant and high profile in our 23 year history. These changes are important in terms of the number of clients affected and the scale of the assets involved.'
St James' Place (SJP.L) shares dipped a penny to 836.5p.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Look up the funds
- Invesco Perpetual Income Inc
- Invesco Perpetual High Income Inc
- UK Equity for Charities I
- St James's Place UK High Income Acc
- St James's Place Strategic Managed Acc
Look up the shares
Look up the fund managers
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by David Kempton on May 24, 2016 at 17:15