First Sentier and Aristotle on notice as SJP announces "changes" to two underperforming unit trusts and proposes winding up a third. Who could take over advising these assets?

St. James's Place's 2026 Assessment of Value (as at 30 June, reported 22 September) flags nine funds for underperformance, including its Asia Pacific and North American unit trusts. "Since the assessment period, we have announced changes to the Asia Pacific and North American funds." The North American fund "did not deliver capital growth over the period and underperformed its comparator benchmarks". The Asia Pacific fund "delivered capital growth over the period but underperformed its comparator benchmarks." SJP says the changes are ones "which we believe will improve diversification and, in turn, long-term client outcomes." At 31 March the two funds had net assets of £1,435.7m (Asia Pacific) and £3,283.9m (North American).

SJP's prospectus dated 24 September still names First Sentier Investors (Hong Kong) as sole investment adviser to the Asia Pacific Unit Trust and Aristotle Capital Management to the North American Unit Trust. No new managers have been named publicly.

On 30 September SJP proposed winding up its Diversified Assets (FAIF) Unit Trust, itself one of the nine funds flagged in the assessment, and suspended trading. DAF held less than 0.6% of SJP's assets at 31 August. KKR remains adviser through the wind-up and has waived its fees, and SJP expects to "return capital to clients this year". "Following a review, we concluded that DAF no longer has a long-term role within our investment proposition," said Justin Onuekwusi, CEO, Investments, adding: "This decision should not be interpreted as a change in our view of alternatives or our confidence in KKR as the investment adviser."

Onuekwusi on the year: "These changes involved introducing new managers in key areas, refining investment objectives where appropriate, and making targeted improvements across a number of strategies." SJP's Q3 new business announcement is scheduled for 29 October.