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SJP hands Woodford £3.65bn mandates as Invesco loses out

by Jun Merrett on Apr 03, 2014 at 13:18

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.’

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13 comments so far. Why not have your say?

Lex Muir

Apr 03, 2014 at 13:27

So, restricted options from a restricted adviser!

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Jonathan Kirby

Apr 03, 2014 at 13:34

Bit of a gamble.

Remember New Star anyone?

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Billy

Apr 03, 2014 at 13:41

even Cilla wouldnt be surprised!

All at no costs to client I hope.

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Tony Barnes

Apr 03, 2014 at 13:42

"So, restricted options from a restricted adviser!" AND a 5% charge !!

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Dan Rear

Apr 03, 2014 at 13:43

Agreed JK. Why does the name Chris Ralph ring a bell?

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Michael Brown

Apr 03, 2014 at 13:43

Well done NMA.

You have a last recognised them for what they are - RESTRICTED - at last.

Let them take the gamble as more for us whenit dopes not work?

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Gordon Hay

Apr 03, 2014 at 14:02

Interesting to see if the performance differential is still there as with the current Neil Woodford managed funds via SJP and those direct with Invesco - huge difference in net returns from a near identical portfolio - I wonder how that could be ..............

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Alex Steger @ Citywire

Apr 03, 2014 at 14:08

Dan Rear, he used to be head of multi manager at Fidelity.

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Dan Rear

Apr 03, 2014 at 14:40

Thanks Alex, that's the chap!

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Southern boy

Apr 03, 2014 at 22:16

Oh dear, all the clowns are out again.

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Lex Muir

Apr 04, 2014 at 09:30

Yes, clowns usually hide behind a mask. Or a 'nom-de-plume', perhaps!

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phil via mobile

Apr 06, 2014 at 08:25

They may be restricted but clients love those glossy brochures and seem happy to ignore the old school charges too

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Dolores Chimichanga

Apr 06, 2014 at 21:39

IFAs be very aware! When SJP make such a move as this all their tied reps will have had a very specialised training session on why SJP have followed this action.

The main reason for the training will be to attack all IFA portfolios exposed to the Invesco Perpetual funds that Neil Woodford was previously involved in and why IFAs (in their opinion) should be following their action. (Its likely Neil Woodford will have been the author of the SJP training on this matter as he is very close to them)

Make sure you have updated your clients on the stance / opinion your practice is taking on the IP funds so your business is not open to the SJP client attack.

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