St James's Place (SJP) is earning nearly four times more than the fund management groups who actually run the money, and the performance of the funds compared to ordinary unit trusts is well below average.
This is the assertion in the special Citywire Report examining in detail the accounts and performance of all 36 SJP funds.
SJP mounts a vigorous defence, pointing out that its charges include many items which customers of other firms still pay for separately – such as advice, tax planning and platform fees. And SJP says this makes it impossible to compare its funds fairly with other funds. The vertically integrated advice business says it uses its massive distribution power to negotiate great deals for its clients who are overwhelmingly happy with its service.
Value for money, transparency, quality of service – all are important issues addressed in the report. It includes a table of every single SJP fund, showing in each case how much SJP earned and how much the fund manager got. Overall, SJP now earns nearly £1 billion from its fund range, nearly four times as much as the fund managers. On its largest single fund it earned £113 million in fees in its last full year. The manager earned £18.2 million.
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