More bad news for St James’s Place (SJP) – Performance and Value Challenges at St James’s Place

St James’s Place (SJP), Britain’s largest wealth manager, has been grappling with serious concerns about the performance and value of its funds. In its most recent assessment, more than 25% of its funds failed to deliver adequate value for investors, bringing forth another wave of dissatisfied clients. The 2024 Value Assessment report highlighted that 13 of the 39 funds available to UK clients fell short of expectations, echoing the same number of underperforming funds from the previous year.

Even more striking is that 77% of the SJP fund range did not meet performance criteria, a figure that has risen significantly from the prior assessment. The SJP Global Quality fund, managing a substantial £9.9 billion, was singled out for its continued struggles, also featuring in Bestinvest’s ‘Spot the Dog’ report as a lagging performer. This issue underscores the need for investors to explore their options, including considering potential st james’s place claims for underperformance.

SJP’s value assessment system, which moved away from a traffic light grading to a yes/no result, now clearly shows that many of its funds are not meeting the expected standards. Thirty of the 39 funds available to UK investors were flagged for performance issues, marking a rise from 25 in the previous report. The poor performance of funds raises the question of whether clients may seek SJP compensation for not receiving the value they were promised.

The report also emphasised some of the caveats that affect the assessment results. Notably, SJP’s unique fee structure includes advice and platform charges in its performance metrics, which is uncommon in the industry. This ‘all-in’ fee model makes it harder for SJP funds to outperform market benchmarks. Nonetheless, SJP aims to simplify its charges next year, potentially improving transparency and comparisons for investors looking to submit SJP claims.

While SJP is working to address its performance challenges, including making changes to £47 billion worth of funds since the last assessment, questions remain about the effectiveness of these alterations. The firm replaced fund managers on eight funds, including those focused on global equity and emerging markets, in a bid to revive struggling strategies. Despite these changes, 13 funds remain in the ‘no’ column, reflecting the need for serious improvement across the board.

Particularly concerning are the three Polaris multi-asset funds, part of SJP’s new fund range, which have already been flagged for underperformance. Though the Polaris funds have only 16 months of performance data, the early red flags are not promising for investors expecting strong returns. Despite this, SJP encourages a long-term view of its multi-asset strategies, believing they will deliver value in the years ahead.

The firm’s management has taken steps to mitigate the damage, with recent changes to investment strategies, especially within their gilt and equity funds. Still, the overarching concern for many investors is whether they are seeing enough value for their money and if they have grounds for a SJP claim.

SJP also faces criticism for the suspension of its Property Unit Trust last October, triggered by challenging market conditions and large-scale outflows. Although the suspension was meant to protect clients’ investments, some investors might seek st. james’s place compensation for the fund’s ongoing suspension, especially since it has been more than a year without significant progress.

SJP’s internal changes, including cost-cutting measures and renaming certain funds to reflect their global focus, reflect the firm’s attempts to address ongoing concerns. The company has launched a £32.9 million share buyback programme, aimed at reducing its capital, but this may not be enough to placate investors who feel their returns have fallen short of expectations.

In conclusion, the recent value assessment has highlighted SJP’s performance issues, with the majority of its funds underperforming. As a result, the likelihood of clients seeking SJP compensation is increasing. While the wealth manager is taking steps to address these concerns, it remains uncertain whether these efforts will be sufficient. Investors worried about their returns should explore their options, including making St. James’s Place claims or filing for SJP claims to recover any lost value due to poor fund performance.

HT Legal specialises in handling St. James’s Place compensation cases. Book a free call with our specialist today to discuss your options.