A recent report by Yodelar, a firm offering regulated advice from fund experts, has raised concerns about the performance of funds and unit trusts managed by St James’s Place (SJP). According to Yodelar’s analysis, a significant portion of SJP’s unit trusts, around 80%, have been rated as poor, with these funds also underperforming in comparison to their sector counterparts over a 10-year period. The report highlights high charges and subpar performance as notable issues.

Over a five-year span, three-quarters of SJP funds have produced returns below the sector average, and 15% have resulted in losses over a decade. Yodelar, known for its independent evaluations of various fund types, noted SJP’s unique position as both a fund management brand and an advice business, which ties its advisers closely to the investment management company. The report also mentions that Yodelar frequently receives complaints from dissatisfied SJP clients, many of whom are unaware of SJP’s status as the UK’s largest restricted firm.

SJP, as the leading investment adviser firm in the UK, oversees 10.3% of the £1.39 trillion invested in UK retail funds. This position has been bolstered by an aggressive adviser recruitment strategy over the past 30 years. Despite their substantial market presence, Yodelar points out that SJP’s funds not only underperform but also come with higher adviser costs, making their financial success dependent on acquiring more advice firms.

Contrasting with Yodelar’s findings, SJP asserts that only three of its funds are underperforming. They argue that Yodelar’s analysis contains several errors, including inappropriate sector comparisons and flawed pricing data. SJP emphasizes that their fund performance reflects total charges, including various costs and ongoing advice, which differs from the performance metrics of other funds that only deduct fund costs. They also highlight their long-term investment approach, with clients typically investing in diversified portfolios for an average of 14 years.