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SJP hands Woodford £3.65bn mandates as Invesco loses out

SJP hands Woodford £3.65bn mandates as Invesco loses out

Restricted advice group St James's Place (SJP) has backed star manager Neil Woodford’s new venture by appointing him to run mandates of around £3.65 billion instead of his old company Invesco.

Woodford (pictured), previously managed the UK Equity, Income Distribution and UK High Income funds for SJP while at Invesco, but his announced departure in October 2013 led to the restricted advice firm putting the mandates under review.

SJP announced today that it will give the mandates to Woodford rather than stick with Invesco.

SJP has overhauled a range of mandates, from which Invesco Perpetual has lost out on running a total of £8 billion.

It will no longer run the £3.2 billion Strategic Managed fund and £164 million Strategic Managed Unit Trust which have both been given to Threadneedle Investments.

Invesco also lost out on the £720 million Global Equity Income fund mandate which was passed over to Manulife. Fund managers Paul Boyne and Doug McGraw previously managed the fund under Invesco Perpetual until they joined Manulife in December 2012.

Invesco will continue to run the £1 billion SJP Corporate Bond fund.

Craig Newman, head of retail asset management at Oakley, 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.'

Chris Ralph, SJP chief investment officer, said: ‘We are excited to continue our relationship with Neil Woodford, Paul Boyne and Doug McGraw and also introduce new fund managers to the clients of St James’s Place that are not otherwise available to UK retail investors.’

SJP also announced that Artisan Partners will continue to manage the £2.9 billion Global Managed fund and £613 million Global Unit Trust.

The group is set to launch an Emerging Markets Equity fund to be run by Wasatch Advisors.

Mark Barnett assumed responsibility for the Invesco Perpetual High Income fund, Invesco Perpetual Income fund and the Invesco Perpetual UK Equity Pension fund that were managed by Woodford ahead of schedule in March.

Woodford announced his departure from Invesco in October 2013.

His new firm Woodford Investment Management is set to launch in May and is backed by private equity firm Oakley Capital.

Gary Collins, head of wholesale distribution at Threadneedle Investments, said the group was looking forward to working with SJP on the Strategic Managed mandate.

'Threadneedle’s appointment as manager of the Strategic Managed fund reflects our strong track record across asset classes and the success of our investment approach that is active, client-focused and performance driven.

'We believe the combination of Richard Colwell’s unconstrained contrarian UK Equity strategy, our “quality income” Global Equity capability run by Stephen Thornber, and Jim Cielinski’s extensive fixed income expertise provides an excellent solution for investors in the Strategic Managed fund,' he said.

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