Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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

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.

He added: '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.'

In other changes SJP will seed an Emerging Markets Equity fund with £5 million, to be managed by US-based Wasatch Advisors.

SJP chief investment officer Chris Ralph said in a statement: '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.'  

He added: 'St James’s Place’s ability to provide our clients with peace of mind through a seamless transition to new fund managers, such as Woodford Investment Management, a new fund management company, is a tangible demonstration of the benefits of our investment approach [and] long-standing relationship with high [a] quality manager.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Rathbones' Smith on China's economic hegemony ambitions

Rathbones' Smith on China's economic hegemony ambitions

Discussing China's saving problem, Ed Smith argues that if the country opens up there will be an outflow of capital.

Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Read More
Wealth Manager on Twitter