St Jamess Place Launches Low-cost Portfolios

St James’s Place, the UK’s largest wealth manager, is taking another decisive step in reshaping how it serves investors. The firm is introducing a new range of Polaris Multi-Index portfolios, offering clients access to low-cost, diversified investment options following its sweeping fee overhaul earlier this year.

The move reflects the group’s determination to combine value, clarity and choice under its new charging model, ensuring clients understand exactly what they are paying for and what they receive in return. It also underlines SJP’s continuing evolution into a modern, transparent wealth manager that can compete across the full spectrum of investor needs.

A clearer structure for clients

In August, St James’s Place restructured its entire charging framework to separate advice fees, product costs and investment management charges. The result is a simpler system in which clients can easily see each component of their total cost.

This change was introduced ahead of industry peers and sets a benchmark for compliance with the Financial Conduct Authority’s Consumer Duty, which requires firms to demonstrate fair value and good outcomes for customers. SJP also abolished its long-criticised exit fees on investment bonds and pensions, reinforcing its commitment to flexibility and openness.

Chief executive Mark FitzPatrick described the overhaul as “a fundamental reset” for the business. “Clients want both quality advice and fair value,” he said. “By making our charges more transparent and widening our range of investment options, we are aligning St James’s Place with the expectations of a new generation of investors.”

A new range focused on value

The four Polaris Multi-Index portfolios, to be launched at the end of October, will be managed by SJP’s in-house investment team under chief investment officer Justin Onuekwusi. They will invest primarily in index funds, designed in partnership with State Street Global Advisors, one of the world’s largest asset managers.

Each portfolio will correspond to a defined risk profile, allowing clients to choose according to their objectives and tolerance for volatility. Annual management costs will be around 0.2 per cent, markedly lower than traditional actively managed funds.

Onuekwusi said the initiative was about “building long-term value through disciplined asset allocation and efficient implementation.” The team will take a three- to five-year investment view, balancing active oversight with the cost advantages of passive strategies.

“The partnership with State Street enables us to design bespoke building blocks rather than buying off the shelf,” he said. “That means clients benefit from institutional-grade construction and rigorous oversight while keeping costs competitive.”

Building on the success of Polaris

The new line expands SJP’s existing £80 billion Polaris range, launched three years ago to give clients access to multi-manager portfolios across different styles and asset classes. The Multi-Index addition is intended to complement, not replace, the active approach.

Tom Beal, group investment director, said the firm remains “strongly committed to active management,” which continues to play a key role in its broader offering. “But we recognise that cost is an important factor for many investors. The Multi-Index portfolios add another choice for clients who value long-term discipline and low turnover.”

He added that blending active and passive approaches within the SJP framework enables advisers to tailor portfolios more precisely to client goals. “It’s about providing the right solution, not a one-size-fits-all product,” he said.

Responding to a shifting market

The introduction of low-cost portfolios places SJP firmly in the competitive field dominated by providers such as Vanguard, whose LifeStrategy range has popularised simple, low-fee multi-asset investing. But St James’s Place is positioning its offer differently: rather than replicating an index-only model, it is combining passive efficiency with its hallmark adviser-led service and governance.

Industry analysts note that this hybrid strategy could give SJP an advantage. While low-cost funds appeal to cost-conscious investors, many still value the reassurance of personalised financial advice, something that SJP’s 5,000-strong partnership network continues to provide nationwide.

The firm manages £198.5 billion of assets and serves more than 900,000 clients across the UK. By maintaining its advice-driven model while modernising its investment structure, SJP aims to appeal to both existing clients and younger investors seeking transparency and digital accessibility.

A step toward lasting reform

SJP’s overhaul followed a period of intense scrutiny across the wealth management industry. The FCA’s Consumer Duty, introduced in July 2023, has accelerated reform by requiring firms to prove they are delivering fair value and clear communications.

For SJP, the response has been comprehensive. Beyond simplifying fees, the company has invested heavily in adviser training, client technology and governance. It has also strengthened its central investment function, ensuring portfolio design and manager selection remain robust under the new framework.

Consumer advocates have welcomed the changes. James Daley, founder of Fairer Finance, said that “greater transparency is good news for customers” and that SJP’s reforms mark progress towards a fairer wealth management market.

Competitive on cost, strong on service

Under its new model, analysts estimate that a typical SJP client will now pay around 1.9 per cent in total annual charges, broadly in line with peers once advice and platform costs are included. However, clients choosing the new low-cost portfolios could see their overall fees fall further.

Importantly, these products are fully integrated within SJP’s advice process, ensuring that cost reduction does not come at the expense of service quality. Advisers will continue to provide suitability assessments, periodic reviews, and holistic financial planning, which are core aspects of the firm’s value proposition.

Positioning for the future

The introduction of the Polaris Multi-Index range signals that St James’s Place intends not just to adapt but to lead in a changing industry. With rising regulatory expectations and growing client sophistication, the wealth manager is showing that scale and innovation can coexist with accountability.

“SJP’s transformation is about trust,” said Onuekwusi. “By combining institutional investment expertise, transparent pricing and a long-term focus, we are building a platform that can support clients through every stage of their financial journey.”

The firm’s emphasis on continuous improvement suggests this may be only the beginning. With a clearer structure, a wider choice of investments and a commitment to fair value, St James’s Place is positioning itself for sustainable growth in an era when confidence and clarity matter most.