Super Investor Neil Woodford Wins £3.6bn Cash From St. James’s Place plc

St. James’s Place plc (LON: STJ) is migrating its customers’ funds from Invesco Perpetual to Neil Woodford’s new money management group.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Neil Woodford, Britain’s celebrated super investor, secured a deal to manage £3.6bn of investors’ cash from money manager St. James’s Place (LSE: STJ).

St James’s Place was promoted to the FTSE 100 in March, and the shares are up 16% since the beginning of the year, adding 6p to 842p during early trade this morning.

Around half of St James’s Place customers — some 200,000 people — have their money in three funds run by Woodford, UK High Income, Income Distribution and UK Equity, which will continue to be managed by the renowned stockpicker after he leaves his role at Invesco Perpetual.

Pound CoinsNeil Woodford has worked at Invesco Perpetual for 26 years, but will leave his employer at the end of April to establish his own firm, Woodford Investment Management (WIM).

St James’s Place is withdrawing a total of £7.7bn of client funds from Invesco, with £3.35bn going to fund manager Threadneedle, alongside the cash going to Woodford’s new firm.

Woodford Investment Management is yet to receive regulatory approval, but today’s move by St James’s place can be seen as a ringing endorsement.

Woodford’s replacement at Invesco, Mark Barnett, took control of Woodford’s flagship funds at the beginning of last month. He is a similarly long-term investor, who only buys companies he has “conviction” in.

Of course, not everyone has the luxury of being able to afford an expensive fund manager. Indeed, in most instances, taking into account all fees, a simple index fund will produce better results.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Mark does not own shares in any company mentioned.

More on Investing Articles

Person holding magnifying glass over important document, reading the small print
Investing Articles

3 UK stocks I reckon could benefit from the upcoming general election

As the general election hurtles towards us, this Fool wonders which UK stocks could benefit, and focuses on three picks…

Read more »

BUY AND HOLD spelled in letters on top of a pile of books. Alongside is a piggy bank in glasses. Buy and hold is a popular long term stock and shares strategy.
Investing Articles

At 11%, this dividend share pays the biggest yield in the FTSE 100

When a dividend share offers a big yield, we need to be cautious of the risks. But I reckon this…

Read more »

British Isles on nautical map
Investing Articles

I reckon Hiscox shares could be one of the best bargains on the FTSE

I've been investing in FTSE companies for years, but after a major decline I've not seen a company with as…

Read more »

Grey Number 4 Stencil on Yellow Concrete Wall
Investing Articles

4 reasons I’d still buy National Grid shares in a heartbeat despite the recent wobble!

As National Grid shares plunged on the news of a right issue, I’m not flinching, and reckon it's a top…

Read more »

Three signposts pointing in different directions, with 'Buy' 'Sell' and 'Hold' on
Investing Articles

After gaining 45% in 12 months, is the Amazon share price now overvalued?

Our author thinks the Amazon share price might be too high. While the long-term future of the business looks bright,…

Read more »

Investing Articles

2 hot dividend stocks I’d buy and hold for 10 years

Our writer reckons these two dividend stocks could help her bag juicy dividends for years to come and explains why.

Read more »

British Pennies on a Pound Note
Investing Articles

2 dividend-paying penny shares I’d happily own

These two penny shares have caught our writer's eye for a combination of income prospects now and business growth potential…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

This FTSE 250 share looks like a bargain to me!

This FTSE 250 share has seen its price tumble due to chaotic local economic conditions in a key market. But…

Read more »