St. James’s Place is a British financial services company headquartered in the UK, with additional offices in Singapore, Hong Kong, Shanghai, and the UAE, targeting expats.
Many expats might have policies or investments with St James’ Place and these may be right for some, however, in my eyes, I believe there are better options. Recently SJP share price has tanked due to the performance of their funds compared to market returns which has got investors asking questions about their fees.
If you have any questions or you have a policy with St James Place that you would like to review, please contact me through my website.
You can access their funds in two ways:
- Invest directly with St. James’s Place.
- Invest through various DIY platforms, particularly in the UK.
In addition to fund and investment management, they offer services like mortgages and insurance. They claim their advice is guaranteed, adding compliance benefits, and boast numerous awards. With over 4,000 advisors, 730,000 clients, and billions in assets under management, they have expanded significantly through mergers and acquisitions.
Typical Costs of St James Place
Costs typically include:
- Up to 5%-6% upfront.
- Ongoing charges up to 2.5% per year, including fund fees.
- Possible exit fees for pension and bond products.
There is contradictory information online about whether the upfront fee is included in the ongoing fees. Regardless, their fees are above the industry average, leading to negative public relations and media reports. Consumer advocate groups like Which have criticized the opacity of these fees.
With anything, you might accept the fees if you receive consistent and above average returns or because it’s an institution that has is a good size, however. I would make sure you speak to several companies before making any decision.
Fund Costs and Performance
Fund costs vary, with the St. James’s Place International Corporate Bonds at 1.45% per year and the SJP Global Smaller Companies at 2.15% per year. None of their funds can compete with low-cost ETFs or index trackers.
Performance has been mixed:
- SJP International Equity Fund has outperformed benchmarks in recent years.
- 80%-90% of their funds lag behind competitors and benchmarks.
During crises like 2008 and 2020, many SJP funds performed similarly to the overall market. Advisors generally help investors avoid panic selling during crashes, improving long-term performance.
St. James’s Place Portfolios
SJP offers various portfolios combining multiple funds to suit clients’ risk tolerance.
Positives and Negatives of Investing with St. James’s Place
Positives:
- Well-regulated, minimizing worst-case scenarios.
- Compliance and professional advice.
- Retention of clients due to reasonable, though not outstanding, fund performance.
- Professional staff and decent wealth protection products.
- Better than some traditional expat plans.
Negatives:
- High fees and underperformance relative to benchmarks.
- Not fully independent, often suggesting SJP funds.
- UK-centric advice, less ideal for non-British expats.
- Basic and expensive high-net-worth solutions.
- Limited client control over investments.
- Old-fashioned approach lacking in modern technology use.
- Slow processes compared to modern investment apps.
- Potential for opaque fee structures and negative public relations.
- Inconsistent service due to advisor turnover and varied office quality.
- Controversial advisor incentives and reliance on star fund managers.
If You’re Unhappy with Your St. James’s Place Fund
If you’re unhappy with a St. James’s Place fund, the action you can take depends on how you hold the fund:
- External Platform: Selling out should be straightforward.
- Direct Investor: You might be able to sell out without penalties, but it depends on various factors. Sometimes, full access to your money might take a few years.
Understanding your position is important as it can guide your next steps.
Conclusion and My Views
In my personal experience, the advisors at St. James’s Place are generally very good. However, according to Yodelar, the performance of many of their funds is poor. Additionally, the fees are extremely high, reportedly up to 5% upfront and 2% annually, which is a significant cost when most low-cost ETF outperform St. James Place funds. Therefore, it’s essential to question these fees.
St. James’s Place does offer a good selection of funds, but their advisors are not fully independent and typically recommend funds and platforms within St. James’s Place, which may not always be the best option for your specific circumstances.
FAQs
Who is St. James’s Place?
St. James’s Place, a British financial services company headquartered in the UK, targets expats. Investors can access their funds directly through St. James’s Place or via various DIY platforms, particularly in the UK. Beyond fund management, they offer services like mortgages and insurance. With over 4,000 advisors, 730,000 clients, and substantial assets under management, they have expanded significantly through mergers and acquisitions.
What are the typical costs associated with St. James’s Place?
St. James’s Place charges upfront fees of up to 5%-6% and ongoing charges (up to 2.5% per year), including fund fees. While there is contradictory information online about whether the upfront fee is included in the ongoing fees, their fees remain above the industry average. This has led to negative public relations and media reports, with consumer advocate groups criticizing the opacity of these fees.
What Are the Pros and Cons of Investing with St. James’s Place?
Investing with St. James’s Place offers both advantages and drawbacks. On the positive side, the company is well-regulated, ensuring a level of security for investors. Their advisors provide professional advice, and clients appreciate reasonable fund performance. Additionally, St. James’s Place offers decent wealth protection products and stands out compared to some traditional expat plans.
However, there are notable negatives. First, their fees are high, exceeding industry averages. Investors may find better options elsewhere, especially considering the underperformance of some St. James’s Place funds relative to benchmarks. Additionally, the company’s advice tends to be UK-centric, which may not suit non-British expats. Overall, investors should carefully weigh these factors before committing to St. James’s Place.
Further reading:
- St James Place International Full Review For Expats
- Saxo Bank vs Other Platforms Review
- Red Flags for UK Pension Transfers
