Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

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

4 comments
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.

Related Fund Managers

Paul Boyne
Paul Boyne
96/181 in Equity - Global Equities (Performance over 3 years) Average Total Return: 44.48%
Doug McGraw
Doug McGraw
119/279 in Equity - Global Equities (Performance over 3 months) Average Total Return: 1.73%
Stephen Thornber
Stephen Thornber
77/108 in Mixed Assets - Aggressive (Performance over 3 years) Average Total Return: 31.57%
Jim Cielinski
Jim Cielinski
143/151 in Mixed Assets - Aggressive (Performance over 3 months) Average Total Return: -0.65%
Neil Woodford
Neil Woodford
35/76 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 57.56%
Mark Barnett
Mark Barnett
15/76 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 71.17%
Richard Colwell
Richard Colwell
16/76 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 68.21%
Citywire TV
Citywire TV
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter