Is St James' Place delivering returns to investors in the current climate?

11 July 2022

Question by Mark

Is St James' Place delivering returns to investors in the current climate, which I assume is volatile and hard to navigate in the world we live in today?


Answered by Boring Money

Hi Mark,

Thank you for your question.

Delivering returns in the current climate (past six months) has been rare. Investing has very little to do with the past six months or even a couple of years though - looking longer term is far more important.

SJP as you may know, charge a lot for their 'advice' and their funds. SJP generally use an 'active' fund management approach. Multiple academic studies over the past several decades have proven this approach is futile. Getting the calls right more often than not appears to be virtually impossible - the most successful investors have gone with a 'buy the market' approach. Further success has come from titling the asset allocation, at a fraction of the cost of active fund management.

Although some media outlets may be a little biased, SJP funds have regularly featured in 'Spot the Dog' lists (the worst performers). See the links below for more information:

https://www.ftadviser.com/investments/2022/02/14/jp-morgan-3-9bn-fund-largest-to-top-dog-list/

https://ifamagazine.com/article/number-of-underperforming-dog-funds-rises-to-86-and-assets-in-the-doghouse-grow-54/

https://www.yodelar.com/insights/st-jamess-place-review

So, could you have done better elsewhere over the past few decades - absolutely! Will you do better elsewhere moving forwards - nobody can guarantee this, but the evidence is there to assess this yourself.

If you would like to discuss this further, we take a very different approach at Engage Wealth Management.

I hope that helps for now.

Many thanks

Oliver McDonald
Director

Answered by

Boring Money