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View the article online at http://citywire.co.uk/wealth-manager/article/a744646

Invesco loses £7bn to Woodford & Threadneedle in SJP overhaul

by Dylan Lobo on Apr 03, 2014 at 13:50

Invesco loses £7bn to Woodford & Threadneedle in SJP overhaul

Invesco Perpetual has suffered a huge blow in the most significant overhaul of St James's Place fund range in its 23-year history.

As part of the restructure SJP has confirmed it will be following Woodford to his new boutique at Oakley Capital, rather than stick with his replacement on the Invesco UK equity income franchise Mark Barnett.

This will see three mandates transfer to Woodford (pictured): the £650 million UK Equity fund, the £1.44 billion UK High Income Unit Trust and the £1.56 billion Income Distribution fund.

Commenting on the news, Oakely Capital 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.'

Oakley said it would provide Woodford with the infrastructure to alllow Woodford to manage the SJP mandates immediately after his employment with Invesco terminates on 29 April.

Threadneedle win

In a separate blow SJP said it would be replacing Invesco on the £164 million Strategic Managed Unit Trust and the £3.2 billion Strategic Managed fund with Threadneedle.

Richard Colwell will lead the UK equity strategy, joined by Stephen Thornber on global equities and Jim Cielinski on fixed income.

Invesco also lost a Global Equity Income mandate worth around £720 million to Manulife Asset Management's Paul Boyne and Doug McGraw. The pair had run the fund up to December 2012 before joining Manulife.  

Threadneedle head of wholesale distribution said: 'We look forward to working with St James’s Place and delivering for their clients. 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.

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4 comments so far. Why not have your say?

Philip Milton

Apr 03, 2014 at 15:41

So Neil will be a small boutique manager from now on and into his dotage.... just the odd £7billion here and there so he won't be constrained by stock selection then as the funds start growing...? He could almost have stayed where he was!?

That said, how long-term will the mandate be, as if it moves for whatever pressures (and third party mandates can be very fickle and shorter-term than many managers might like for a style to work sometimes) it would also constitute an even bigger loss to the new firm than the 'small' loss to Invesco.

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Whatever the weather

Apr 04, 2014 at 08:18

As usual, Milton has missed the minor details. Woodford AND Threadneedle have taken £7bn from Invesco. The assets at Threadneedle will probably not impair Woodford very much.

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Philip Milton

Apr 04, 2014 at 10:06

No need to be rude, wet weather man!

You're right of course, Threadneedle is taking half of that but I suspect Neil will secure other mandates too - as well as direct investment of course. So when does a boutique manager no longer be a boutique manager because of funds managed?

I wish Neil well in his new position. I'm old enough too, though, to remember the days of Skandia pressurising him and almost having the Invesco funds taken-off its platform for under-performance - Jim Roberts was at the helm driving that at the time I believe. These things do happen.

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Whatever the weather

Apr 04, 2014 at 10:15

Did anyone really believe he was going to run a tiny boutique with a couple of hundred million under management?

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