St. James's Place Share Discussion Threads

[jgoldby] 04/10/2023 17:35

If 0.4% is £600 million then 1% would be £1,500 million and there isn't a spare £900 million in the earnings.

I think you put your finger on it when you said the board has done nothing, there is enough pointing towards there being a culture of incompetence at the top of SJP and the board just being in way over their heads.

[dexdringle] 04/10/2023 17:05

Well, 0.4% of their £150 billion funds under management is still £600 million and that is a worst case scenario.

SJP is a behemoth and a money making machine. Still not sure why the share price has halved in 9 months. Perhaps a monumental crash is coming that will wipe out half of their funds under management. Obviously, the market knows way in advance of the investors....

[jgoldby] 04/10/2023 16:15

St. James's Place are charging clients an annual product fee of 1% on pensions where initial advice is bundled into the ongoing charges, where no fee is charged for initial advice the ongoing product fee is reduced to 0.4%.

The ongoing product fee cap at 0.85% after 10 years is a long way short of the level of charges enjoyed by those who never "paid" for their initial advice and it is only a matter of time until regulatory pressure means that the fee cap falls to 0.4%.

[tim 3] 04/10/2023 12:42

Sorry to hear that we have all been here hence why I tend to invest in ETF's and investment trusts these days.

Doing some research it seems like SJP's entire business model is under scrutiny and they have no choice but to cut charges before being forced too.

Does not help that so many of their investments under perform their relative sectors making it a double whammy of high charges and poor performance for their customers.

When my family first invested with them their partner admitted their charges were high but said that was not an issue because their products outperformed which for a while particularly their equity income funds was true.Its certainly not the case now and frankly am not sure even for their target customers, typically with little market experience and a lot of money, they are an attractive option.

Of course at some point the drop should stop and have noticed some coming out saying they are good value here but their is a lot of uncertainty and we all know the market does not like that.

[dexdringle] 04/10/2023 11:33

My average here is £11. 7,000 shares. So, as you can imagine, I'm not exactly happy. I suppose we do have the divi so we get paid 5% to wait - but that assumes the divi isn't cut by the new CEO.....

[action] 04/10/2023 09:43

New low 786p but bounced back above 806p. May be 786p will hold.

[dexdringle] 03/10/2023 16:54

Appalling performance by a woke board.

Time for a change (of more than the CEO)...

[action] 03/10/2023 16:35

New low 796p. I though it will hold 800p.

[action] 01/10/2023 23:01

897, 907, 858p , 850.40p , 884.80, 849.20, 865.80, 832p weekly closed.Seen 800p low this week.

[dexdringle] 27/9/2023 10:03

I expect it is mostly those who had no contact from their adviser, or no offer of a review, who might have a strong case for a refund of ongoing advice fees paid.

Obviously, a client who declines a review can't be forced to have one. But the adviser could potentially be expected, in those circumstances, to inform the client that they can 'switch off' the ongoing advice fee.

As usual, the FCA cannot be trusted not to retrospectively introduce fee refund rules. I expect this, along with the whole Consumer Duty malarkey, is weighing heavily on the share price.

Perhaps it would be better if there were no advisers and everyone had to simply make their own mind up about what financial products they need (or don't need). What could possibly go wrong then ?

[tim 3] 26/9/2023 19:20

Interesting I usually declined the annual review when Dad was a customer.

[dexdringle] 26/9/2023 19:18

I'm looking forward to the day when a claims management company is set up to make claims against claims management companies for the proportion of successful claims they took !

[dexdringle] 26/9/2023 19:14

If clients reclaim historical ongoing advice fees this will be from their (franchised) adviser and not SJP. If SJP have to step in and pay any reclaimed money then they will in turn reclaim this from the adviser. The 1% 'product fee' that SJP charge, and keep, will continue regardless. As will their share of initial fees.

If clients cease paying the 0.5% ongoing advice fees then that won't affect SJPs income as it all goes to the franchised adviser.

It is the whole adviser model of charging ongoing fees of 0.5% that is in question. Without which it is borderline unfeasible for them to offer an 'advised' service. But having the advice fee linked to the amount of funds invested rather than the time expended on that client is never going to hold water long term. They will eventually have to move to a time costed model which will mean half of them will chuck in the towel.

[dexdringle] 26/9/2023 17:23

"Telegraph Money has learnt that St James’s Place advisers have been sending letters to clients warning them that they can no longer keep them as customers if they do not receive advice they are paying for.

At the same time, claims management firms are targeting the wealth manager – suggesting that clients may have been charged annual fees without speaking to an adviser for years.

One firm, which says it has clawed back £3.5m in fees for clients of St James’s Place since the start of the year, warns that failure to provide an ongoing service is endemic across the financial advice industry"

See my earlier post 435. It feels like PPI all over again....

[apotheki] 26/9/2023 17:07

New article on the company just appeared online @ Daily Telegraph

[dexdringle] 26/9/2023 17:05

Well, on that basis, it does seem to get 'revalued' a lot:

2019 £12
2020 £7
2021 £17
2022 £9
2023 £13
Now £8

These people doing the revaluing need to make up their minds.....

[tim 3] 25/9/2023 16:04

Business is being revalued by the market could still be well below here imo.

[action] 25/9/2023 15:54

Down 3% . New low 813p. Looks like it will be 700p b4 any recovery. Hope I am wrong.

[dexdringle] 25/9/2023 12:12

It makes you wonder whether there might be some crazy PPI style "refund of all ongoing advice fees from the last 15 years if you don't feel you got value" thing in the offing. If you knew in advance that such a thing was coming what might you do.....

[dexdringle] 25/9/2023 10:43

There has to be a point where these have more upside potential than downside.....

[action] 25/9/2023 10:12

New low 817.80p

[dexdringle] 21/9/2023 12:06

Perhaps the fact that SJP's business model requires the charging of relatively high fees is a dead duck in a new era of low fees and Consumer Duty ?

[dexdringle] 21/9/2023 11:45

Entirely possible. Gross mismanagement by the board. Not a sausage from them to support the share price.

Market: we're hammering these down because the business is poor

SJP board: silence

Market: we must be right then....

[action] 21/9/2023 09:36

Are we going to visit 800p in October volatility?