St. James’s Place (SJP) has added six new external fund managers to its £1.9bn Global Smaller Companies fund as part of a switch to a multi-manager approach.
EdgePoint, Select, MAC Alpha, Kabouter, LSV and Kopernik have been carefully selected to manage the fund alongside the existing manager, Northern Trust Asset Management, creating a well-balanced exposure to the small-cap universe.
Each manager was selected based on its unique investment approach, role within the portfolio, and ability to generate excess returns in a complementary manner.
The new line up combines highly active, differentiated managers with the existing low-cost beta strategy to better navigate market cycles. The managers have distinct geographic focuses and strategy characteristics to ensure diversification and to minimise overlap.
Further details on the individual approaches each manager will undertake within the fund:
- Northern Trust Asset Management role as a diversified 'quality minus junk' systematic strategy which enhances overall fund liquidity and resilience.
- MAC Alpha are an international small cap focused intrinsic value manager, applying a long term, in-depth, fundamental research driven approach to an inefficient part of the market
- Kabouter are a quality-growth focused international small cap manager with a concentrated, high conviction portfolio, seeking undiscovered companies and engaging with them to unlock value
- LSV are a global small and micro-cap systematic value strategy, providing active exposure to structurally attractive micro-cap value stocks which are more difficult to efficiently capture through discretionary active strategies
- Select are a US small-cap specialist with a quality-growth focus that offers stability and certainty within the portfolio by focusing on high-quality growth names in the US small-cap space.
- EdgePoint are a Global SMID cap strategy with a long term, opportunistic and intrinsic value focus, seeking proprietary insights not reflected in current market prices.
- Kopernik are a global All-cap strategy built on independent thinking and providing highly distinctive and differentiating exposures to the overall fund.
This follows SJP upgrading its global asset allocation view on smaller companies in December from neutral to positive. The decision was driven primarily by historically low relative valuations following a period of underperformance, and the diversification benefits they provide in an increasingly concentrated global equity market. As a result, allocations to global small-cap stocks were increased across SJP’s Polaris range and model portfolios.
Joe Wiggins, Investment Research Director at St. James’s Place, said: “ The blend of seven managers follows an extensive research process amongst hundreds of candidates. The managers have been selected to provide a diverse range of complementary investment styles, giving clients in the fund a diverse exposure to the small cap universe.
“Small caps across regions are the cheapest they have been relative to large caps in recent history, providing an attractive entry point for investors. A modest overweight to global small-cap equities, particularly within a well-constructed, actively managed multi-manager approach, is a compelling allocation for investors looking to capitalise on these long-term opportunities.”
Ends
Notes to Editors
For further information, please contact:
St. James’s Place
Jasmine Cutajar
Lansons
Sarah Muir
