New fees confirmed by St. James's Place - an overview for clients
St James's Place (SJP) has announced a new pricing structure set to take effect from August 26, 2023. The changes aim to provide a more transparent and competitive offering, particularly for clients with larger portfolios.
Under the new structure, SJP will introduce a tiered initial advice fee based on the portfolio size. The fee will be 3% for the first £250,000, 2% for the next £250,000, and 1% for any amount above £500,000, with an upper limit of £30,000 for the initial advice fee.
In addition to the initial advice fee, SJP will charge an ongoing advice fee of 0.8% and an ongoing product charge. For bonds and pensions, the ongoing product charge will be 0.35% annually, decreasing to 0.25% for amounts over £3 million. ISAs and unit trusts will incur a charge of 0.27% annually, also reducing to 0.17% for amounts over £3 million.
Nearly 95% of SJP's funds will have lower annual charges than their respective Investment Association sector averages, making the new pricing structure more competitive within the market.
Compared to Independent Financial Advisers (IFAs) and market averages, SJP's new fees offer a clearer and potentially more cost-effective option, especially for those with larger portfolios. While IFAs may offer tailored services, their fees can vary significantly, and market averages for fees can be wide-ranging.
Clients with SJP may be able to negotiate a lower initial fee with their adviser, and other platforms offering managed portfolios, such as Nutmeg, Wealthify, Moneybox, and AJ Bell, also present alternative options.
It's worth noting that the total ongoing fee (excluding the initial charge) for most SJP clients will be approximately 1.67% a year, depending on the investments. Existing clients will transition to the new ongoing advice and product charges either on the implementation date or once they come to the end of their early withdrawal charge period for bonds and pensions.
The new pricing structure will apply to all clients of St James's Place (SJP) from August 26, 2023. The maximum initial fee of 3% is considered pricey but not an outlier in the industry. The changes aim to provide a simpler and more transparent pricing structure for SJP clients, offering a clearer understanding of the costs associated with their investments.
- For larger portfolios, St James's Place (SJP) is introducing a new pricing structure that includes a lower ongoing product charge for pensions and bonds compared to other investment options like ISAs and unit trusts.
- In the new pricing structure, clients can find competitive fees for their investments, as nearly 95% of SJP's funds will have annual charges lower than their respective Investment Association sector averages.
- To make informed decisions about their personal finance and investments, clients may consider comparing SJP's fees with those offered by Independent Financial Advisers (IFAs) and other platforms like Nutmeg, Wealthify, Moneybox, AJ Bell, or negotiate a lower initial fee with their adviser.
