St James's Place  

SJP replaces managers on global equity fund in ESG drive

SJP replaces managers on global equity fund in ESG drive

St James’s Place has replaced all four fund managers on its Global Equity Fund as part of its move towards responsible investing and net zero.

Sands Capita, BlackRock, EdgePoint and JO Hambro will all be removed from managing the £14bn fund on Monday (November 22).

They will be replaced with State Street Global Advisers, Man Numeric (the quantitative investment arm of Man Group), and LA Capital, who will all run new strategies with equal weighting.

The fund’s benchmark will change from the Morgan Stanley Capital International (MSCI) All Country World Index to the capital weighted version. In a statement, the firm said this will help provide “more balanced regional, style and market capitalisation exposures”.

The actively managed element of the fund will increase from 40 per cent to 66 per cent, and the investment manager fees will decrease by 0.12 percentage points to 0.1 per cent per annum.

State Street will manage a bespoke passive strategy to correlate with the new benchmark, and Man Numeric and LA Capital will manage an active quantitative strategy that uses data analysis to deliver “outperformance”.

A spokesperson said the new managers have proven track records in integrating responsible investing and ESG considerations into their investment processes and "offer greater diversification of investment styles and exposures".

Rob Gardner, director of investment management at St. James’s Place, said: “We believe this will be a key part in helping us fulfil our promise to our clients of delivering financial wellbeing in a world worth living in.

“On a standalone basis, it becomes one of the largest of its type to integrate ESG factors into its decision-making processes, both to find investment opportunities and mitigate risks.”

In July, Gardner told FTAdviser the firm isn’t trying to be “woke” in its attitude to sustainable investing.

Tom Beal, chief investment officer at St. James’s Place, said: “We are appointing three new managers whose complementary strategies will allow us to access the full range of opportunities available in global equity markets.

“The diversified, index-aware structure of the fund means that it captures many of the benefits of passive investing, whilst retaining the potential to moderately outperform its global equity benchmark over the long-term."