St James’s Place picks Schroders for former Impax mandate
St James’s Place has awarded the mandate for its £5.2bn sustainability-focused fund to Schroders, after tearing it away from Impax at the end of last year.
The loss of the sole mandate of the St James’s Place Sustainable and Responsible Equity fund, which Impax had managed since 2018, caused turmoil at the firm, with its stock price falling almost 25 per cent when the news was revealed last month.
Impax also lost the co-management mandate for the £9.9bn St James’s Place Global Quality Unit Trust in October, causing a significant dip in its assets under management.
Speaking to City PM in October, St James’s Place chief investment officer Justin Onuekwusi said investors should still expect “a number of changes” to which asset managers control its funds.
The sustainable fund, which will be taken over by Schroders from 24 February, is also set to receive a new ‘sustainability focus’ under the regulator’s new Sustainability Disclosure Requirements regime.
Ongoing charges will be reduced by 0.01 per cent as a result of the shift in management, going from 1.87 per cent to 1.86 per cent.
“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,” said St James’s Place CIO Onuekwusi.
“Schroders is a well-regarded expert of sustainable 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.
“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.”