St james's Place Wealth Management

cmhallsworth

My kids have been given £2K each by their great-grandma to invest for the future. My father-in-law has 'helpfully' contacted his financial adviser to set up an investment for them. It's a huge amount of money and we've never invested before so I'm cautious about just agreeing to something I know nothing about.

However I've got a few alarm bells about St James's Place and just wondered what other people thought. My father-in-law probably feels he's more savvy with money than he might actually be - although I recognise this is just my opinion. He thought he'd agreed to a low risk 'portfolio' with SJP but the paperwork he gave us has them investing in medium-high risk stuff. This is going to be invested for 14+ years so I would prefer lower risk, lower return. I really don't want to hand over a cheque for £100 after all of this.

So - opinions about this company?
Also - any wise words for where I should invest this would be great!
Many thanks

dunstonh

He thought he'd agreed to a low risk 'portfolio' with SJP but the paperwork he gave us has them investing in medium-high risk stuff.

There is no standard risk scale. Some scales may refer to the same investment as cautious or medium. Everyone has a different view on risk. One person's medium risk is another person's cautious risk.

What is important is the context and making sure you can accept and can afford the volatility of the recommendation.

This is going to be invested for 14+ years so I would prefer lower risk, lower return.

What is your definition of lower?
Timescale is more appropriate for medium or above as there is at least one economic cycle in there. However, its only £2000 but you consider it a lot. Which suggests capacity for loss may be low. Behavioural risk is something we cant judge but I suspect that would be low based on the very limited info you have written.

So - opinions about this company?

Tied sales reps
Expensive (although on just £2000 it wont be)
Many consider how they present charges to be in breach of the retail distribution review and that indicates a lack of honesty/integrity
Slick and professional (but you are paying for it).

jimjames

cmhallsworth wrote: »

My kids have been given £2K each by their great-grandma to invest for the future. My father-in-law has 'helpfully' contacted his financial adviser to set up an investment for them. It's a huge amount of money and we've never invested before so I'm cautious about just agreeing to something I know nothing about.

However I've got a few alarm bells about St James's Place and just wondered what other people thought. My father-in-law probably feels he's more savvy with money than he might actually be - although I recognise this is just my opinion. He thought he'd agreed to a low risk 'portfolio' with SJP but the paperwork he gave us has them investing in medium-high risk stuff. This is going to be invested for 14+ years so I would prefer lower risk, lower return. I really don't want to hand over a cheque for £100 after all of this.

So - opinions about this company?
Also - any wise words for where I should invest this would be great!
Many thanks

Personally I wouldn't be paying a company like that but based on your comments you appear to be very risk averse and maybe do need that handholding. Although £2000 is a lot to you, I'm surprised that they're even interested, I was under the impression they dealt with much higher amounts and higher charges.

Bear in mind that inflation will eat into the value of this money so long term you are likely to do better having it invest rather than in some low risk bank account or low return investment.

I certainly think it's a good idea to invest money for kids over that timescale and it's something I've done for my kids albeit with a different company that I've chosen. I have gone far more high risk as I'm prepared that the investments will vary over time but long term should do better (and have done exceptionally well so far). You just need to be aware not to panic and sell up if they show a sign of dropping a bit - that's the worst thing you can do. Probably best to put the paperwork away and just look every few years not daily.

JohnRo

It has to be said, £2K each really isn't a huge amount, if that's what you meant to type.

I'd look to invest that sort of money in something simple like a global multi asset fund. Purchase it via a low cost platform and you're not going to go far wrong, relatively, with that sort of investment. Another option is to go for a higher risk, in the reasonable hope and expectation of higher rewards given the time scale, which could be an investment trust, something like SMT.

Another alternative, given the relatively small amount, is to forget about stock market investments and utilise the current crop of high interest bank accounts offering 3-5% if you aren't already doing so.
They are perceived as a safer option and won't give you sleepless nights when a significant or protracted market downturn occurs.

jimjames

JohnRo wrote: »

I'd look to invest that sort of money in something simple like a global multi asset fund. Purchase it via a low cost platform and you're not going to go far wrong, relatively, with that sort of investment. Another option is to go for a higher risk, in the reasonable hope and expectation of higher rewards given the time scale, which could be an investment trust, something like SMT

I completely understand what you're saying but I'd imagine that anyone who has never invested before would have no idea at all what a low cost platform was or SMT, it's probably like we're talking in another language.

I guess we need the OP to come back with some more info so any suggestions can be more specific. As ever a good place to start to read up is www.monevator.com where you could find some useful info to help make sense of it all. Although HL isn't a low cost platform, it's still much lower cost than SJP and I think it particularly suited to new investors so maybe worth a look too, www.hl.co.uk

cmhallsworth

Hi. Thanks for the replies. I guess what I mean isn't that it's a 'huge' amount of money per se. I would feel guilty however if I took someones word for it that this was a good investment and it went pear shaped.

I'm not used to being so green. I was able to sort out my own mortgage and understood the jargon so this is new territory.

I'd heard SJP weren't very upfront/clear about their fees and wondered how much to worry about that.

The reason they're interested in us is that they've done very well out of my in-laws over the years. They've told my father-in-law they're doing this as a favour for him as a loyal customer. I think it's more like they're touting for business, call me a cynic! My husband and I are doctors and I think they reckon we're raking it in - how wrong they are!

Maybe the thing to do is get the money in a decent interest rate savings account so I can buy some time to do my own research. Currently it's earning my in-laws interest not the kids.

Oddly, if it were my money I'd probably be less risk averse but it's for the kids. Also, because I don't understand the jargon I can't really get a feel for what they mean by medium to high risk investments.

dunstonh

The reason they're interested in us is that they've done very well out of my in-laws over the years.

Tell your inlaws to get an IFA to look at their products and investments. IFAs love coming across SJP clients. Always able to make massive cost savings. I saved someone over £300k moving out of SJP in the past.

They've told my father-in-law they're doing this as a favour for him as a loyal customer. I think it's more like they're touting for business, call me a cynic!

They probably are doing it as a favour as a £2000 investment is not profitable in isolation. However, all advisers (whether FA or IFA) have situations like this. Many IFAs deal with all family members from the wealthy grandparent to the youngest grandchild just starting out. You look at the family as a whole and not the individuals within it.

Kess

I know this is quite an old thread but I thought I'd add a comment as a warning about SJP.

SJP managed a very sizeable portfolio for an elderly relative. Somehow they got sight of her will, and wrote to all beneficiaries (when she was frail but still alive) introducing themselves and obviously touting for business.

The relative has now died, and needless to say we advised the solicitor acting as executor to get her money out of SJP's sticky hands asap.

So they come across as a dodgy bunch who are happy to exploit what should be private/confidential information. I'd avoid them like the plague.