UK wealth manager changes external fund manager and aligns fund with SDR label

UK wealth manager St James’s Place (SJP) has said that it will give its £5.2 billion ($6.3 billion) Sustainable & Responsible Equity (SRE) fund to Schroders to manage from next month, after terminating its contract with investment manager Impax in December last year.

Schroders will be added as the sole manager of the fund, SJP said in a statement. The fund will invest in Schroders global sustainable growth and global value equity investment strategies. By blending the two investment styles, the range of companies the fund can invest in will increase, SJP said. Ongoing charges will reduce by 0.01 per cent as a result of these changes.

The move sent Impax shares tumbling, after a difficult year for the firm.   

SJP also announced that it will be adopting the Financial Conduct Authority’s (FCA) Sustainability Disclosure Requirements (SDR) “Sustainability Focus” label on its Sustainable & Responsible Equity (SRE) fund.

The changes – which will come into effect from 24 February 2025 – aim to improve diversification, introduce a more balanced blend of investment styles, while maintaining the focus on sustainability, which is required to meet the FCA’s new higher threshold for sustainable investments.

“The bar to be a labelled fund is very high and will help clients to better understand how their money is being invested in companies that aim to deliver a positive outcome for people and the planet,” Justin Onuekwusi, chief investment officer at SJP, said.

“Schroders is a well-regarded expert of s,ustainable investing, with a diversified approach. They have depth of experience across different equity investment strategies, which can provide a more balanced blend of investment styles for the fund,” he said.

“Our partnership with SJP is testament to the robustness of our active investment proposition, which has been further reinforced by meeting the FCA’s new criteria for sustainability labels across many of our funds,” Richard Oldfield, group chief executive, Schroders, added.

“Clients, investors and the industry are increasingly focused on bespoke investment solutions that are able to deliver strong risk-adjusted returns together with a comprehensive commitment to sustainability,” Alex Tedder, co-head of equities at Schroders, said.

“We’d like to thank the team at Impax for their expertise, partnership and their key role in the success of the fund to date. We continue to see Impax as a leader in investing in the transition to a more sustainable economy and a key partner for us in the future,” Onuekwusi added.

St James’s Place has more than £184.4 billion ($223 billion) funds under management.