12 St James's Place funds fail to deliver value
Of the 12 funds which failed to delivered value, nine will apply lower annual management charges from the end of July 2023.
Out of the 39 funds available to UK investors, 12 were labelled as ‘delivered insufficient value' as of March 2023. In all 12 instances, fund underperformance was the main driver for the negative outcome.
Out of the 12, nearly half were global strategies.
St James's Place shares slump on Consumer Duty charge cap and inflows slowdown
For instance, the Global Absolute Return fund underperformed its benchmark over the last 15 months. Performance was assessed from January 2022, when the strategy — which used to be the Multi-Asset fund — was merged with the Alternative Assets and UK Absolute Return fund, SJP explained.
The board of the Unit Trust Group at SJP said it will reduce the annual management charge by two basis points from 31 July 2023 as a result, and will also change the manager, replacing Invesco with Fulcrum.
Another fund of note is the company's Japan strategy, which the UTG board found also delivered insufficient value to clients, underperforming its benchmark over the last five years.
Similarly to the Global Absolute Return fund, its annual management charge will be reduced by four basis points and current manager Nippon will be replaced by Dalton Investments.
Of the 12 funds which failed to delivered value, nine will apply lower annual management charges from the end of July 2023.
St James's Place makes raft of manager and remit changes to fund range
Tom Beal, director of investments and CEO of the UTG at St James's Place, said: «This year's value assessment statement reflects a change in our methodology as we build on our principle to improve clients' understanding of their
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