St James's Place has broken its silence over its sacking of Taube Hodson Stonex Partners (THS) after a twenty-year relationship.
SJP announced in November it would be replacing THS - its longest-serving fund manager who at one point ran £5bn of assets for the firm - with Australian Magellan Asset Management and Canadian-based Edgepoint.
Aggrieved at the decision, THS this month took the unusual step of running full page advertisements in a number of national newspapers, pointing out the inferior performance of the SJP pension fund after it slashed THS's mandate from £5bn to £1bn in 2011.
Though it refused to comment at the time on the mandate changes, SJP CEO David Bellamy (pictured) told IFAonline the retirement of two of THS's founders - the late Nils Taube and John Hodson - was the main reason for the switch.
"I understand their disappointment, but we have to do what's in the best interests of our clients," he said.
"THS today is not the THS it was 20 years ago: there's no T and there's no H.
"Our investment committee have to make decisions and judgements and recommendations we believe is in the best interest of clients and that's what we did."
THS has responded by launching a retail share class for its flagship £592m International Growth and Value fund, the first time the firm has targeted wealth mangers directly.
Bellamy added further mandate changes among its 30-odd fund managers (who between them mange £34.8bn of client money) was "inevitable" given market conditions.
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