How we make changes

That can sound complicated, so we want to show you how it works. Here are just a few recent examples of decisions made by the Investment Committee to introduce new funds or change managers.

Date / Change Notes

November 2022

Polaris range launched

We launched 4 new fund of funds solutions: Polaris 1, Polaris 2, Polaris 3 and Polaris 4. They are distinguished by their potential ranges of allocations to equities, fixed income and alternatives

October 2022

UK Equity Income Fund

We merged the Allshare Income, Equity Income and UK Income funds into the UK & International Income Fund and then renamed the merged fund the ‘UK Equity Income Fund’.

July 2022

Emerging Markets Equity Fund

To allow the fund to continue to meet its objective of long-term capital growth, we removed the requirement to hold a focused portfolio of only 40-50 stocks. Removal of this restriction allowed the fund to increase the number of stocks held and reduce the concentration risk.

July 2022

Global Growth Fund

We simplified the fund’s structure to improve the long-term growth potential of the fund, by changing some of the fund managers to ones with a sharper focus on growth stocks. The Fund’s investment policy was updated to remove the requirement to invest via other funds.

January 2022

Global Absolute Return Fund

We merged the UK Absolute Return and the Alternative Assets funds into the Multi Asset fund and renamed it the Global Absolute Return fund.

The asset allocation and fund selection of the Polaris range will be determined by our Investment Committee. Activities such as monitoring and rebalancing will be managed by State Street Global Advisors. Actively managed and backed by meticulous research, the Polaris range is aligned with clients’ risk tolerance, investment objectives, and capacity for loss. The solutions are automatically rebalanced to ensure they continue to match clients’ attitude to risk.

This change enhanced the diversification within the merged & renamed fund by increasing the number of fund managers to three. As well as the existing fund manager Artemis Investment Management LLP, Redwheel and J.P.Morgan were also appointed to manage the fund. The blend of complementary investment styles aims for stronger performance over the longer term through varying market conditions.

This change improved the fund’s liquidity and diversification, as well as allowing access to a broader range of investment opportunities. It also reduced risk and increased the potential for the fund to continue to perform positively in the medium to long term. As well as the current fund manager Wasatch Advisors Inc, Arga Investment Management LP, Lazard Asset Management and Somerset Capital Management LLP were also appointed as fund managers.

The Global Growth Fund structure changed from a ‘fundof-funds’ to a more straightforward structure of holding direct assets. Changes to the Fund Managers were also made and now include: Artisan Partners, Axiom Investors, Edgepoint Investment Group, Sands Capital Management and WCM Investment Management.

Date / Change Notes

December 2021

Global Growth, Global Quality and International Equity Funds

We appointed State Street Global Advisors (SSGA) as replacement manager for Magellan.

November 2021

Global Equity Fund

We redesigned this fund for stronger Environmental, Social and Corporate governance (ESG), greater performance and lower charges.

SSGA are an existing St. James’s Place fund manager and we have worked extensively with them for several years as we’ve evolved our fund range. They are the fourth largest asset management firm in the world, and have a strong pedigree in the management of active quantitative strategies.

We replaced the existing structure of BlackRock, Hambro and Sands Capital with a new combination of equal parts: Los Angeles Capital, Man Numeric and State Street Global Advisors. All three are exclusive to SJP. The new structure has much-improved ESG credentials, including a core targeting of a minimum 50% reduction in carbon emissions, a minimum 50% reduction in fossil fuel exposure, and improved green revenue exposure versus the benchmark. The fund will also provide greater diversification and aims for stronger performance. We amended the fund’s objective and reduced charges.

October 2021

Growth and income portfolios

Following continual review of our range of portfolios, we made some changes.

July 2021

UK Fund

We merged the Income Distribution, UK Equity and UK Growth funds into the UK & General Progressive fund and renamed the merged fund ‘UK’.

We revised the fund mixes of the Growth Portfolios, using our evolving fund range and responding to changing markets. Given market conditions, we decided that the outcomes the Defensive Portfolio could deliver were not attractive to our clients in the long run, so it was discontinued.

To simplify and consolidate our UK equity offering, we merged several UK funds. Combining complementary investment styles, we aim to deliver a smoother, more consistent return profile. Keeping most of the managers of the merged funds, the Investment Committee decided to replace Majedie and add some managers new to SJP – Baillie Gifford and Los Angeles Capital –producing a fund split equally between six managers.

July 2021

Diversified Bond Fund

We replaced Brigade in the mandate.

We replaced Brigade with BlueBay and Man GLG, resulting in a line-up of BlueBay, Man GLG, Payden & Rygel and TwentyFour. Man GLG is a manager new to St. James’s Place, with a wealth of experience in high yield. The evolved Diversified Bond Fund is designed to offer improved asset allocation and enable it to respond more opportunistically to short- and medium-term market movements, while managing risk and volatility.

The Global Absolute Return Fund will enhance diversification by increasing the number of fund managers to six, with complementary investment strategies. The combination of these fund managers should provide a smoother investment return over the longer term through varying market conditions. The fund managers now include: Amundi, BlackRock, Invesco, Payden & Rygel, State Street Global Advisors and Wellington Management.

July 2021

Investment Grade Corporate Bond Fund

We added Columbia Threadneedle.

July 2021

UK Income Fund

Replaced Majedie with Artemis.

As a strategy complementary to that of Loomis Sayles, the Investment Committee added Columbia Threadneedle to this fund. This aims to improve diversification and deliver a smoother, more consistent return profile.

In the interest of ongoing performance, the Investment Committee decided to replace Majedie with Artemis in this mandate. We also reduced client charges.