St James's Place  

SJP places two funds on performance watchlist

The number of funds on its amber list and watchlist decreased this year compared to 2020.

Last year 17 funds were placed on the amber list, compared with nine this year, and five were placed on the watchlist in 2020 compared with two this year. 

A spokesperson for SJP said: “As a wealth management business, we are focused on client outcomes and therefore on long-term performance, so the five-year time frame we assess funds over is particularly important.

"We have always monitored our funds and external managers constantly, and we can and do take quick and effective action when necessary.

“It’s important to note that, based on our overall performance assessment, only 2 per cent of our funds are rated red by assets under management and 80 per cent are green.”

Why is SJP releasing this information?

As part of the Financial Conduct Authority’s asset management review, fund houses are required to carry out an annual assessment of whether the firm provides value for their clients.

The value rules, which have been in effect since the start of 2020, require asset managers to look at their performance, costs, economies of scale, comparable market rates, services and share classes.

Last week, the Financial Conduct Authority warned fund managers it will take action after a review found most value assessments were not meeting FCA standards.

The FCA conducted a review of 18 fund managers of different business models and sizes between July 2020 and May 2021 and found while some had been conducting value assessments well, “too many AFMs often made assumptions that they could not justify to us”, undermining the credibility of their assessments.

sally.hickey@ft.com