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.

Why Nigel Thomas would increase St James’s Place stake on Lloyds sale

Why Nigel Thomas would increase St James’s Place stake on Lloyds sale

AXA Investment Managers' star manager Nigel Thomas said he would consider increasing his stake in St James's Place (SJP) if Lloyds sold its 60% interest in the wealth manager.

Citywire AAA-rated Thomas (pictured) made his comments to Wealth Manager amid fresh reports the part state-owned lender was looking for a buyer for the stake, valued at around £1 billion, to keep regulators of its back and pave the way for it to pay its first dividend in five years.

Thomas owns 7.5 million shares in SJP accounting for 0.89% of his Citywire Selection AXA Framlington UK Select Opportunities fund.

‘If SJP is spun off we would increase our allocation to the stock as long as the price is right. I bought SJP post-credit crunch, around two years ago, on the basis I would be able to increase my position if Lloyds were to sell the holding,’ Thomas said. 

He added: ‘Post-RDR the SJP business model looks robust. The partners have equity, meaning their interest is very aligned to the performance of the PLC. Cashflow is strong and I believe the overhang from the uncertainty surrounding Lloyds has held back the stock.’

The power of the SJP business model was demonstrated on 31 October when third quarter numbers showed assets under management were moving towards £33 billion.

Investec Securities applauded the figures, repeating a buy rating and describing the firm as a ‘rarity in the UK life industry in that it is a growth company’.

However, not all appear to be as enamoured with the firm. BlackRock Investment Management disclosed a 0.25% short on SJP on the back last week’s trading update.

Over three years to the end of August, Thomas has returned 47.3% versus the FTSE 100 Total Return's 24.39%.

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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

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.

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