How does St James Place compare in your opinion with the rest of the providers?

28 March 2022

Question by Snehasish

I have stocks and shares ISA with St James Place, I find their charges very high? How do they compare in your opinion?


Answered by Boring Money

Hi Snehasish,

Thank you for your message.

St. James' Place (SJP is the UK's largest financial advice company). They are restricted, meaning they only advise clients to invest in a selection of funds. Rather than having access to the entire market.

Now, most independent financial planners, myself included, are a little biased when it comes to St. James' Place so I will try to be as neutral as possible for the purpose of this question :)

Although SJP doesn't normally charge an initial fee, they charge an initial 5% for ISAs. This is high, compared to the market. Ongoing fees for the funds range from 1.6-1.9% but this normally includes an adviser. Transaction costs will increase this further.

Compared to the market, SJP fees are normally higher. Although, some actively managed portfolios+adviser fees would be similar. I would ask myself what you're getting for the additional fees, and could this be achieved through a low-cost diversified index portfolio? Charges will no doubt erode the growth of your portfolio over the long term. Depending on your specific portfolio, it is likely you're paying over the odds.

An independent financial planner would usually be happy to review and analyse your options.

I hope that helps for now.

Oliver

Answered by

Boring Money