St. James's Place has dropped Woodford Investment Management from the running of a suite of its funds, replacing it with Columbia Threadneedle and RWC Partners.
In a notification to the stockmarket on Wednesday, St James's Place announced it had terminated its mandate with WIM. The mandate comprises £3.5bn worth of assets under management in its UK High Income Unit Trust, UK Equity (Life and Pension), Income Distribution (Life) and SJPI UK High Income funds.
The mandate will now be run by Threadneedle's Richard Colwell and RWC's Nick Purves. St James's Place said Purves is its longest-running fund manager, having run mandates for the wealth manager since 2014.
It's the latest in a string of blows for Neil Woodford, who's flagship Woodford Equity Income fund was suspended on Monday afternoon.
In a statement, St James's Place said: "While the St James's Place funds managed by WIM were separate mandates and not part of the Equity Income fund suspended earlier this week, the St. James's Place Investment Committee believes these changes will ensure its clients' investments continue to be managed effectively.
"Under new management, these funds will remain as segregated mandates and St. James's Place will retain responsibility for asset custody and security.
"There will be no impact on the investment objective for these funds. The funds' investment criteria will retain a strong liquidity profile, and remain focused on income, with a weighting to FTSE 350 stocks."
Colwell is head of UK equity income at Threadneedle and runs a number of UK equity funds. Purves co-manages the RWC Income Opportunities and RWC Enhanced Income funds.