When you start investing, it is very easy to get bogged down in new terminology, some of which may not make any sense. It is very common to save time and money by outsourcing investment management, but it is also common to be concerned about whether you are being taken advantage of in that situation.
St. James Place provides strong services to clients around the globe, but that service costs money as the firm has expenses it must pay. These expenses are met in the form of fees that are charged. But are the fees charged fair for your valuable investments?
How Much Does SJP Charge?
Not only are St. James Place fees in a normal range compared to its competitors, but two independent reports have also backed up this information. In fact, a report by Numis Securities found that St. James Place could easily justify a 3% rate due to the value it delivers to its clients. Another report found that the charges that were passed on to the clients were typical for that type of portfolio over a period of ten years.
But how do these charges work at Saint James Place? When you start investing with St. James Place, there is a 4.5% payment of your initial investment that covers the advice that you receive. You will then see an annual charge of 0.5% that covers your ongoing advice and the work your advisor manages on your behalf. This includes investment research, monitoring, fund selection, administrative costs, and financial planning services.
Covering The Basics
That covers the basics for your investments. However, you may also see external fund manager charges because St. James Place funds are managed by external fund managers who need to cover their risk management, research, and reporting costs. If a manager outperforms your fund's goals, you may see a performance fee, but only if it is in your St. James Place agreement. Product charges may also arise as fees based on the kind of products you are investing in.
Pensions and investment bonds are initially charged 1.5% of your investment and have an annual charge for management of 1% after the first six years. An individual savings account or unit trust has a 0.5% initial product charge and could have possible ongoing charges depending on the investment type.
This can seem like a confusing range of charges as an investor. Still, St. James Place makes it simple by moving all of your ongoing charges into a single percentage to cover everything, making it easier to determine the value you receive. Among the firm's clients, 80% find that they receive a good or excellent value for the money, with an additional 15% finding the value reasonable for what they pay. The wide-ranging services make the benefits well worth the cost, allowing clients to benefit from inheritance planning, investment advice, tax planning, and much more.
St. James Place Has You Covered
St. James Place also passes its proactive cost-cutting measures onto its clients; tiers charge to reduce charges over time as a fund grows and provides customized financial advice for your situation. If shifts need to be made, their disciplined approach ensures that your investments are protected. That is just one of the many reasons why most St. James Place clients enter retirement with $57,300 more than those who do not.
To ensure that you gain the best possible benefits from your retirement, estate, tax, or financial planning, working with a St. James Place financial advisor provides you with the best outcomes. Go with the investing pros and don't try to go it alone!
