Impax Asset Management Group announced today that St. James’s Place (SJP) will terminate its mandate to manage the Sustainable & Responsible Equity Fund, worth approximately £5.2 billion in assets under management.
Impax Asset Management shaes were down 20% at the time of writing and were London’s biggest decliner on the day.
The termination, expected to take effect in February 2025, is subject to approval by the fund’s unitholders at an Extraordinary General Meeting scheduled for January 9, 2025. The move will impact Impax’s annual revenue by an estimated £12.7 million.
According to Impax, SJP’s decision stems from a desire to diversify the fund across different investment styles. However, looking at the fund’s performance, SJP is probably tired of the poor performance.
Trustnet data shows the SJP Sustainable & Responsible Equity fund has consistently underperformed the benchmark having returned only 5% over three years compared to 17.7% for the benchmark.
The mandate represents Impax’s only partnership with St. James’s Place.
St. James’s Place themselves have been the subject of scrutiny in recent months amid accusations of poor service and customer support that is likely to lead to significant redress.