St. James’s Place has suspended dealing in the SJP Property unit trust and deferred redemptions in the life and pension funds as at 12pm on 20 October 2023.
The suspension is a proactive measure intended to protect the interests of clients. By implementing this measure, SJP aims to manage potential risks and maintain the stability of the Property unit trust, life and pension funds.
A temporary reduction of 15 basis points in the annual management charge will apply to the unit trust and will remain under review.
The temporary suspension and deferral reflects a number of difficulties currently, but the primary factor is due to client withdrawals being greater than investments, which has led to liquidity challenges.
Tom Beal, Director of Investments at St. James’s Place, said: “We have taken this step to protect the interests of clients. A combination of factors has led to our decision to suspend dealings in the Property unit trust and defer payments in the pension and life funds. This action is also aimed at preventing the challenge of having to sell properties quickly to generate cash. Selling properties under such pressure may lead to the fund manager selling them for less than their actual market value, potentially resulting in financial losses for the fund and its investors.
“During this period of suspension, we will be assessing market conditions and closely monitoring valuations of properties within the fund. We are committed to resuming dealing as soon as we are satisfied that conditions are right.”