SJP Annual Value Assessment Statement
The Value Assessment Statement is a regulatory document that we produce each year following the SJP Unit Trust Group Board’s review of our funds’ performance, charges, and support services.
In the statement, we provide details of how we deliver value and the actions we’ve taken over the past 12 months. This is part of our commitment to giving you clear and fair information about your investments with us.
We remain confident in the value that our investment proposition delivers in helping you achieve your financial goals.
If you have any questions about the statement, please contact your St. James’s Place Partner.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and the value may fall as well as rise. You may get back less than the amount invested.
Value Assessment Statement 2024
Our 2024 Value Assessment report is now available. This annual review, carried out by the Board of St. James’s Place Unit Trust Group (UTG), contains an assessment of our funds based on seven different criteria over the 12 months to 31 March 2024. Together these factors produce a picture of overall value. Here is a brief summary and explanation on how to read this report.
Summary
In the 2024 report, the UTG board determined just over 70% of SJP funds provided value over the timeframe covered. They also identified 13 in the range that require further improvement although in most cases, work has already started with actions taken in 2023 and early 2024. Fund managers have been changed on nine of the 13 funds singled out (including replacements and additions). Meanwhile, charge reductions on our Global Emerging Markets, Global Smaller Companies, Japan and Property funds will continue.
As these are in progress, it may take time for the effects to be notable.
In the 2024 report, key areas of assessment such as comparable market rates (CMR) and performance are impacted by our charging structure versus our peers. As announced in 2023, work has begun on separating the charges for advice and platform-like services from the funds. As such, we expect to see improvements in the CMR assessment ratings once our charges have been separated in 2025. The simplified charging structure we are moving to will enable a greater like-for-like comparison with peers.
It may take more time with regards to performance given we examine net returns over five years. However, our charging structure is not the sole reason for underperformance in every case. For some, market events and specific investment decisions produced returns lower than expected. Please read each individual fund assessment to see what affected each fund.
For every fund we’ve given either a ‘yes’ or a ‘no’ response to the question of whether it has delivered overall value through the 12-month review period to 31 March 2024. We believe this is a clear and definitive assessment overall.
There are seven, prescribed, individual criteria that make up that determination. Each of these is assessed using a red/ amber/ green rating. Therefore, some funds highlighted as offering value, may have underlying components rated as red or amber.
No, each of the seven individual criteria hold equal weighting. However, for many of the 13 funds identified as not offering sufficient value overall, this is largely based on a specific level of underperformance relative to its benchmark over five years. For other funds it’s a combination where more than one area may need improvement.
The Value Assessment is an annual review process covering a specific point in time. This year’s report examines the period to 31 March 2024. However, we maintain ongoing monitoring of all our funds throughout the year. Where the UTG board has determined funds have not delivered sufficient value, they will be subject to increased monitoring and scrutiny. This will then factor into any subsequent actions to improve value.
We have already made changes to nine of the 13 funds we have singled out, with the aim of improving outcomes for clients. However, as the performance period assessed is five years (or less for those without a five-year track record) to 31 March 2024, such changes will take time to feed through to these annual assessments.
As noted in 2023, our charging structure which includes the cost of advice and platform-like services impacts how the funds are assessed net-of-charges. This is particularly relevant when making comparisons to some of our peers. Most other funds in the market do not include such charges.
Additionally, we assess the net performance of each fund against market benchmarks, which have no charges at all. This sets a higher yardstick for our performance ratings.
Changes to our charging structure are due to begin in 2025. While we expect this will have a notable impact on our assessments it will take time for its effect to play out with respect to net performance.
Still, charges are not the only reason some funds were assessed red for performance. In select funds, market events and specific investment decisions produced returns lower than expected. Please read each individual fund assessment to see what affected each fund.
The same issue regarding the impact of our charging structure arises in the comparable market rate – CMR - assessment. In this criterion, our funds are compared against others available on platforms and in the wider marketplace.
Peer groups were created for each of our funds by independent third-party specialists. To improve comparability with these peers, we "looked through” some elements of our total charge, stripping out advice and some administrative, platform-like services. Still, this is an imperfect measure, resulting in more funds being rated amber and red. However, we remain confident post implementation of a simpler charging structure next year, our charges will be more straightforward to assess externally (and in our view, are some of the most competitively priced).
As part of our normal monitoring and assessment process, we will look to make changes to funds as needed to meet their objectives and deliver fair value for clients.
The UTG Board remains comfortable funds in the range will achieve their long-term objectives, and our Investment Committee will continue to closely monitor them, acting where necessary to deliver good client outcomes.
If you have any questions on the report, please contact your SJP Partner or email [email protected].
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
Statements from previous years
These statements are based on facts and figures that were correct at the time of original publication.