[Updated with Citywire analysis below]
St James’s Place (SJP) has changed the managers on three of its fund strategies.
The changes, which take effect from 30 July 2018, include:
- The manager of the Alternative Assets fund (with assets of £1.2 billion) will switch from Blackrock to Boston-based Wellington Management, with Steve Gorman as lead manager.
- The Continental European fund (£387 million) currently managed by Stuart Mitchell from SW Mitchell, will switch to Ken Hsia from Investec Asset Management.
- Hsia will also join as a co-manager of the Greater European Progressive fund (£1.2 billion) alongside existing co-managers Ken Broekaert of Burgundy and Stuart Mitchell.
- The £3 billion Balanced Managed fund which has been managed by AXA Framlington will be moved to a joint management team of Ben Inker of GMO, which takes 80% share of the strategy, and Mark Baribeau of Jennison Associates, which will take 20%.
SJP also announced two other changes. The team at Majedie Asset Management, managers of the UK & General Progressive and UK Growth funds, will be given additional flexibility to invest up to 20% of its strategy in overseas equities.
The Schroder Managed fund will be renamed the Managed Growth fund for life, pension and international products.
Chris Ralph, SJP's chief investment officer, said: ‘The Alternative Assets fund will look to combine both systematic and fundamental investment strategies across a range of asset classes. As one of the largest investment houses in the world, we believe the multi-asset team at Wellington Management has the resource and expertise to provide attractive returns for investors over the medium to long-term.'
Last year New Model Adviser® analysed how much SJP earns from its unit trust funds compared to the managers running the strategies. In several cases SJP earned much more than the manager.
The Alternative Assets fund was the starkest example. SJP earned 40 times as much as external manager Blackrock (SJP earned £12.9 million compared to BlackRock’s £333,000).