St James's Place  

Adviser questions SJP after client incurs 2.2% cost

The client said both changes have incurred transaction charges to the funds that are disproportionate compared to the charges for transactions that he has through Philip J Milton & Company. 

A spokesperson for SJP said: “This fund has a single manager exposure in an environment that has low liquidity and high volatility. The fund holds a focused portfolio of only 30-40 stocks, and although it has performed strongly since launching in 2014, this growth has led to an increase in concentration and liquidity risk within the fund. 

“We believe diversification and asset allocation are key to driving change. For this fund, we want to remove the constraints within the fund and increase the number of stocks held to drive potential for the fund to perform well over the medium and long-term.” 

SJP said the estimated transaction costs are calculated by an independent, specialist, transition manager and said it does not profit from transaction costs. 

“Instead, these are the share of external costs that are incurred whenever assets are traded,” it added. 

“This is the one-off estimated cost of repositioning the fund following the policy change, to add fund managers, and increase the number of assets held. Transaction costs in emerging markets tend to be materially higher than those experienced in developed markets.”

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