Latest news with #StJamesPlace
Khaleej Times
18-07-2025
- Business
- Khaleej Times
St. James's Place Middle East marks two years in Dubai
As the UAE continues its emergence as a global financial centre, the UK's largest financial advisory business and international wealth manager, St. James's Place has marked its second year in the emirate, predicting further growth as capital flows into the region. May marked the second anniversary since SJP Middle East obtained regulatory approval from the Dubai Financial Services Authority (DFSA) and established its base at the Dubai International Financial Centre (DIFC). Since establishing its base in Dubai, the firm has experienced rapid growth, driven by the need for individuals to manage complex international assets across borders, says partner Daniel George. The UK-headquartered firm, which manages over $258 billion for more than one million clients worldwide, has also benefited from the significant number of Britons relocating to the UAE in recent years, drawn by its thriving job market. "The UAE is clearly a hotspot for individuals looking for a high-growth, pro-business environment," says George. "We are seeing clients move to the UAE for different reasons. It is great that we can help internationally mobile individuals manage their wealth across borders and make the most of the opportunities this region affords." SJP expects further growth in the coming years as clients look to relocate to the UAE, attracted by its competitive tax landscape and attractive lifestyle. "We are extremely positive about the growth prospects for this region and continued economic growth across the UAE," George added.
Yahoo
18-07-2025
- Business
- Yahoo
Analysis-Foreign investors are warming to London's unloved stocks
By Amanda Cooper and Lucy Raitano LONDON (Reuters) -Britain's stock market finally appears to be reversing years of underperformance against the rest of Europe, as a UK/U.S. trade deal, lighter regulation and cheap stocks deliver juicy returns that are starting to attract foreign investors. The FTSE 100 has gained nearly 10% this year to hit record highs this week, beating the STOXX 600, which is up 7.5%. On a year-to-date basis, London's blue-chip index has performed better than its European counterpart for the last six weeks, its longest such stretch since late 2022, when a weak pound beefed up revenues for the export-focused FTSE. This week, the financial regulator said it will roll out new rules to boost Britain's capital markets, while Chancellor Rachel Reeves told the financial industry to paint a less negative picture of UK stocks for would-be retail investors, as she seeks new ways to revive a stagnating economy. For foreign investors, the blue-chip index is already looking appealing given sterling's rally this year, while asset managers say the narrative around the UK is shifting. "We are seeing signs of big asset allocators coming back to the UK," Justin Onuekwusi, chief investment officer at St. James's Place. "I am talking about non-UK endowments, pension funds, asset owners, wealth managers who were all very underweight the UK post-Brexit," he said. In dollar terms, the FTSE-100 is up nearly 18% so far this year, set for the biggest dollar-denominated returns since 2009, compared with a 6% year-to-date gain in the S&P 500, which has also hit record highs. The pound, up 7% this year against the dollar as investors turn away from U.S. assets in response to heightened U.S. policy uncertainty under U.S. President Donald Trump, acts as a headwind for FTSE constituents, 80% of whom get their revenues from overseas. Yet the index's wealth of large defensive companies, including healthcare, utilities and food retailers, help insulate it against swings in the underlying economy, like drugmaker AstraZeneca or supermarket chain Tesco It also has growth-sensitive resource stocks such as Anglo American and BP to tap into strength in oil, copper and gold. Britain meanwhile is one of the few economies facing less trade uncertainty with a U.S. trade deal in place. In contrast, the European Union faces the threat of 30% tariffs if there is no agreement by August 1. 'TEA AND BISCUIT' "The UK stock market is the calming cup of tea and biscuit in an uncertain world. There's nothing fancy on offer, just reliable names that do their job day in, day out," AJ Bell investment analyst Dan Coatsworth said. Valuations for FTSE-100 companies have lagged those elsewhere in Europe for years. The 2016 Brexit vote accelerated that trend, with fewer companies using London to list their shares and fewer cropping up as M&A targets, given the political and economic uncertainty that prevailed at the time. Now the UK market is catching up. The FTSE-100's 12-month forward price-to-earnings ratio of 12.5 is the highest for around five years, compared with 14.11 for the STOXX, the narrowest gap in around 18 months, LSEG data shows. The S&P trades at a ratio of 23, a near-10 point premium to the FTSE, compared with under 2 points 10 years ago. "The relatively poor performance we've seen in the UK versus particularly the U.S. over the past two years has begun to unwind. We're in the foothills of that," Michael Stiasny, head of UK Equities, M&G Investments, said, adding that the UK market has traded at a "significant discount". The pound is close to a four-year high against the dollar, but has weakened against the euro this year, offering a tailwind to the FTSE's big exporters. The EU is Britain's largest trading partner, accounting for 41% of exports in 2024, followed by the United States, with 22%, according to official data. It isn't all rosy. The British economy is flagging, inflation is well above the Bank of England's target of 2% and business activity and employment are slowing. Barclays data shows UK equities have seen a net outflow of $20 billion in 2025, although outflows have almost dried up in the last month, compared with Europe's year-to-date inflow of $13 billion and rapidly slowing inflows. Sebastian Raedler, head of European equity strategy and Bank of America Merrill Lynch, said he felt the FTSE's strong run was a function of the currency and in line with the rest of Europe. "Net-net, the FTSE has mildly outperformed, but I would say in an environment where there are a lot of big stories ... a 2% (out)performance of the UK this year would rank further down the radar from my perspective," he said, referring to the percentage gain in the FTSE in 2025 versus that of the STOXX. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
18-07-2025
- Business
- Reuters
Foreign investors are warming to London's unloved stocks
LONDON, July 18 (Reuters) - Britain's stock market finally appears to be reversing years of underperformance against the rest of Europe, as a UK/U.S. trade deal, lighter regulation and cheap stocks deliver juicy returns that are starting to attract foreign investors. The FTSE 100 (.FTSE), opens new tab has gained nearly 10% this year to hit record highs this week, beating the STOXX 600 (.STOXX), opens new tab, which is up 7.5%. On a year-to-date basis, London's blue-chip index has performed better than its European counterpart for the last six weeks, its longest such stretch since late 2022, when a weak pound beefed up revenues for the export-focused FTSE. This week, the financial regulator said it will roll out new rules to boost Britain's capital markets, while Chancellor Rachel Reeves told the financial industry to paint a less negative picture of UK stocks for would-be retail investors, as she seeks new ways to revive a stagnating economy. For foreign investors, the blue-chip index is already looking appealing given sterling's rally this year, while asset managers say the narrative around the UK is shifting. "We are seeing signs of big asset allocators coming back to the UK," Justin Onuekwusi, chief investment officer at St. James's Place. "I am talking about non-UK endowments, pension funds, asset owners, wealth managers who were all very underweight the UK post-Brexit," he said. In dollar terms, the FTSE-100 is up nearly 18% so far this year, set for the biggest dollar-denominated returns since 2009, compared with a 6% year-to-date gain in the S&P 500 (.SPX), opens new tab, which has also hit record highs. The pound , up 7% this year against the dollar as investors turn away from U.S. assets in response to heightened U.S. policy uncertainty under U.S. President Donald Trump, acts as a headwind for FTSE constituents, 80% of whom get their revenues from overseas. Yet the index's wealth of large defensive companies, including healthcare, utilities and food retailers, help insulate it against swings in the underlying economy, like drugmaker AstraZeneca (AZN.L), opens new tab or supermarket chain Tesco (TSCO.L), opens new tab It also has growth-sensitive resource stocks such as Anglo American (AAL.L), opens new tab and BP (BP.L), opens new tab to tap into strength in oil, copper and gold. Britain meanwhile is one of the few economies facing less trade uncertainty with a U.S. trade deal in place. In contrast, the European Union faces the threat of 30% tariffs if there is no agreement by August 1. "The UK stock market is the calming cup of tea and biscuit in an uncertain world. There's nothing fancy on offer, just reliable names that do their job day in, day out," AJ Bell investment analyst Dan Coatsworth said. Valuations for FTSE-100 companies have lagged those elsewhere in Europe for years. The 2016 Brexit vote accelerated that trend, with fewer companies using London to list their shares and fewer cropping up as M&A targets, given the political and economic uncertainty that prevailed at the time. Now the UK market is catching up. The FTSE-100's 12-month forward price-to-earnings ratio of 12.5 is the highest for around five years, compared with 14.11 for the STOXX, the narrowest gap in around 18 months, LSEG data shows. The S&P trades at a ratio of 23, a near-10 point premium to the FTSE, compared with under 2 points 10 years ago. "The relatively poor performance we've seen in the UK versus particularly the U.S. over the past two years has begun to unwind. We're in the foothills of that," Michael Stiasny, head of UK Equities, M&G Investments, said, adding that the UK market has traded at a "significant discount". The pound is close to a four-year high against the dollar, but has weakened against the euro this year , offering a tailwind to the FTSE's big exporters. The EU is Britain's largest trading partner, accounting for 41% of exports in 2024, followed by the United States, with 22%, according to official data. It isn't all rosy. The British economy is flagging, inflation is well above the Bank of England's target of 2% and business activity and employment are slowing. Barclays data shows UK equities have seen a net outflow of $20 billion in 2025, although outflows have almost dried up in the last month, compared with Europe's year-to-date inflow of $13 billion and rapidly slowing inflows. Sebastian Raedler, head of European equity strategy and Bank of America Merrill Lynch, said he felt the FTSE's strong run was a function of the currency and in line with the rest of Europe. "Net-net, the FTSE has mildly outperformed, but I would say in an environment where there are a lot of big stories ... a 2% (out)performance of the UK this year would rank further down the radar from my perspective," he said, referring to the percentage gain in the FTSE in 2025 versus that of the STOXX.
Telegraph
17-07-2025
- Business
- Telegraph
St James's Place finally scraps exit charges – is it time to move your money out?
Are you a St James's Place client? We want to hear your experiences, good or bad. Email: money@ St James's Place will introduce its much-anticipated new charging structure next month, reducing costs for some clients, but others will still be subject to its controversial exit charge for six years to come. Britain's biggest wealth manager, which has long been criticised for the complexity of its fee model, first announced the overhaul in 2023 following the introduction of new regulations by the City watchdog. In the same year, The Telegraph revealed that some clients had paid thousands of pounds for advice they did not receive, driving a surge in complaints from claims management firms. The firm, which looks after the pensions and savings of more than one million clients, came under pressure after the Financial Conduct Authority published new 'consumer duty' rules. It has since earmarked £426m for potential refunds in relation to the scandal. After a tumultuous few years, the new charging structure – which also does away with the controversial 'early withdrawal charge' for new customers – is a chance for the firm to draw a line in the sand. So, is this the moment to leave St James's Place for good – or give it another chance? James Rainbow, chief executive at St James's Place, said: 'I wouldn't understate the extent of the change we are making. It's been the result of 18 months of significant work from across the St James's Place organisation.' As part of the overhaul, the firm is now separating out its charges into advice fees, product fees and fund fees. Previously, the wealth manager bundled up its charges, making it extremely difficult for clients to work out how much they were paying. How the new charges work Some costs are coming down. St James's Place used to charge an initial advice fee of up to 4.5pc, but now this will now be tiered based on the amount invested. This means a new client would pay £10,500 upfront on a £400,000 sum, according to the firm's calculations. However, the annual advice fee is increasing from 0.5pc to 0.8pc. The firm said this was to reflect 'where clients get the most value'. An annual advice fee of 0.8pc is the industry average, according to research from the Financial Conduct Authority published in 2020. The firm is also launching tiered product charge. The fees are 0.35pc for investment bonds and pensions, falling gradually depending on the amount invested, with 0.25pc due on sums over £3m. For Isas and unit trusts, the charge is 0.27pc, dropping to 0.17pc on amounts over £3m. Until now, the price of a fund has included advice charges. But going forwards, the firm is stripping these out, which should make investment performance easier to compare. Fund charges will now range between 0.09pc and 0.69pc, with the average at 0.52pc. Altogether, the ongoing charges for a client with a pension add up to roughly 1.66pc each year. How St James's Place compares Holly Mackay, of research firm Boring Money, said this put St James's Place 'pretty bang on in the middle of the pack', compared to other wealth managers. She said: 'On average, most St James's Place clients will be better off. A big problem with their previous charging structure was its complexity – it was head-bangingly difficult to work out what you were paying and then compare [with others].' Most of its funds are cheaper following the restructure. However, a minority now cost more. St James's Place said that the majority of investors would see their charges go down regardless, because clients tend to hold a combination of funds in a portfolio. But a small number of clients will see their overall fees go up. The firm said it was writing to these clients to inform them. Pensions and investment bonds will be more expensive in the short-term. The new charges work out at about 1.66pc per year, up from 0.92pc in the first six years under the previous system. However, they compare favourably over the long-term – down from 1.92pc in years seven to 10, and from 1.77pc after that. One of the biggest changes has been the removal of the so-called 'early withdrawal charge'. St James's Place used to levy a charge if a client with pensions or investment bonds left the business within six years. The charge applied on a sliding scale – reducing from 6pc in year one to 1pc in year six. This was designed to recoup initial fees which were spread over six years, the firm argued. New clients will no longer have to pay this fee if they want to move their money. Investments outside of the six-year window will move into the new charging structure from August. But those with pensions and investment bonds who joined the firm in the last six years will still face a penalty if they leave within that timeframe. In fact, any money added to pensions or investment bonds in the last six years would be subject to the charge if the client left. Lee Goggin, of the website Find A Wealth Manager, said: 'I would be mightily peeved if, as an existing client, I still had to endure the early withdrawal charge, and yet new clients aren't caught by this ridiculous fee.' Mr Goggin also said he thought the fund charges were still 'at the upper end' of the market. 'For high-net-worth investors, particularly those with larger portfolios, the total cost of investing with St James's Place is likely to remain steep when compared to other, more modern discretionary managers or platform-based models offering low-cost passive funds.' St James's Place said that nearly 95pc of its funds will now rank below average in terms of cost for the relevant fund sector. Mr Rainbow said: 'We see the real value in the relationship between our clients and their advisers every day. 'These changes will make it much simpler to see just how competitive we are on a like-for-like basis for the fully personalised, trusted advice our advisers provide. It's a good thing for our advisers, our business and most importantly our clients, the majority of which will benefit from lower overall charges over their relationship with us.'
Daily Mail
12-07-2025
- Business
- Daily Mail
EXCLUSIVE SJP investment boss warns US risk profile has 'fundamentally changed'
St James's Place has cut exposure to US stocks within its £16.4billion Polaris 4 fund as the wealth manager becomes increasingly wary of the world's biggest market. US stocks have endured a rollercoaster 2025 after rebounding from heavy losses suffered in the wake of President Donald Trump's 'liberation day' trade tariffs. 'It's difficult to argue that US equities aren't riskier today than they were in the past,' Justin Onuekwusi, chief investment officer at St. James's Place, told This is Money. 'This isn't about trying to call the top of the market. It's about acknowledging that the risk profile of US equities has fundamentally changed. 'If an investor's risk appetite hasn't shifted, it's hard to justify allocating more to an increasingly concentrated and expensive market.' The wealth manager has shifted its exposure away from the US, and now holds underweight positions across the board. SJP said its underweight position is consistent in all of its portfolios. For its Polaris 4 fund, part of its flagship Polaris range, this means shifting to a 15 per cent underweight position in US equities. SJP said this is a deviation equivalent to as much as £2.4billion compared with a market-cap weighted global benchmark. The fund holds a 48 per cent weighting towards the US. Though still significant, this compares to a 66 per cent weighting held by the MSCI ACWI index. Onuekwusi said: 'The US remains our single largest regional equity allocation. But given current valuations and concentration, we believe a more balanced, risk-conscious allocation is appropriate.' Polaris 4 instead holds a significantly higher allocation to Europe and the UK, at 18 per cent and nine per cent respectively, compared with 13 per cent and three per cent for the MSCI ACWI. Justin Onuekwusi, chief investment officer at St. James's Place, says US equities are riskier today than they have been in the past Onuekwusi says the risk associated with the US market has changed, and as a result it is 'justify allocating more to an increasingly concentrated and expensive market', if an investor's risk appetite hasn't shifted. He added that the lower weighting towards the US is 'not just due to political uncertainty', but 'a combination of market concentration and stretched valuations across many US companies'. High valuations in the US market, which accounts for two-thirds of global stocks, has been a topic of market concern for some time. This week chip giant Nvidia surpassed $4trillion in market cap, meaning that it is worth all of the UK's publicly listed firms combined. 'The top 10 US stocks now represent more than a third of the US market, the highest level of concentration in over 60 years,' Onuekwusi said. 'Despite some recent sector reclassifications, such as Amazon moving from Technology to Consumer Discretionary, the index remains heavily tech-oriented, reminiscent of late-1990s market dynamics. 'We are positioning away from US mega-cap stocks in favour of a more balanced exposure to large and small caps - a consistent stance across Polaris 1 through 4.' The magnificent seven companies, that is Apple, Alphabet, Amazon, Meta, Nvidia and Tesla, currently accounts for almost 34 per cent of the S&P 500's total value. Onuekwusi added: 'Over the past 18 months, while maintaining our US underweight, we have shifted our overweight from Emerging Markets into a broader allocation across the UK and Europe. This repositioning has helped add resilience, particularly during periods of tariff-related uncertainty and in the subsequent recovery.' He added: 'Our decision to underweight US equities in Polaris 4 reflects a belief that more compelling risk-adjusted opportunities currently lie outside the US markets. Both our medium-term asset allocation and our bottom-up analysis - driven by our primarily active manager lineup - point to stronger prospects in regions such as Europe, the UK, Japan, and Emerging Markets, where we are currently overweight. Combined with the US' higher concentration in global markets, is the large valuations many US equities are exhibiting. Onuekwusi says valuations are reaching the levels seen during the dotcom bubble, highlighting concerns over their future. Nvidia, for example, is currently operating on a price to earnings ratio of 32.8, while Amazon is at 32.9 and Tesla operates at an eye watering PE ratio of 132.6. He said: 'Investors are paying a premium for future earnings growth, which reduces the margin for error. If that growth doesn't materialise, share prices become more vulnerable to correction. The higher the valuation, the less cushion there is against disappointment.'
