St. James’s Place has completely removed the requirement to pay investors an income from its £940m Global Equity Income fund, which has been renamed the Global Value fund under a new multi-manager approach with Pzena Investment Management and Sanders Capital set to join existing manager Artisan Partners.
As an income fund sitting in the IA Unclassified sector, the fund currently offers a yield of 2.1%, according to FE fundinfo. The IA UK Equity Income sector currently averages a yield of 5.3%, while the Global Equity Income sector offers 3.4%.
In a statement on Thursday (9 July) SJP, which made no reference to removing the yield requirement other than the name change, said that from 20 July Pzena and Sander manage 25% of the portfolio respectively under different styles.
SJP CIO Tom Beal explained that "after intense research and scrutiny by the in-house investment team and one of our external consultants", Pzena will employ its "highly structured investment process focussing on unearthing deeply undervalued companies".
Sanders will take "a broad view when defining value, believing that companies with relatively robust valuations can still be undervalued relative to their long-term potential," he added.
Artisan, Beal said, has a "proven track record over many years of managing the Global Managed fund for St. James's Place, constructing a diversified portfolio of undervalued global companies".
He added: "The Global Value fund these managers will be running for St. James's Place is exclusive to UK retail investors and cannot be accessed elsewhere."
The fund, which sits in the IA Unclassified sector, is down 2.2% over one year, but has returned 14% and 52.6% over three and five years respectively, according to FE fundinfo. The sector has averaged 0.3%, 10% and 29.1% over one, three and five years respectively.
Beal said: "Value investing is one of the most established and successful ways of investing in equities but has largely been out of favour for the past decade.
"At SJP we believe in having a diverse range of approaches to allow the managers' underlying stock decisions to prevail, and the changes we are making provide our clients access to high calibre global equity managers, irrespective of whether a value, growth or quality investment style is in favour at a particular time.
"Our focus remains on designing innovative investment strategies that provide clients with access to a broad range of funds, managed by globally leading investment managers."