St James’s Place (SJP), a British wealth manager, has closed all three of its property funds, due to a downturn in the property market since the Covid-19 pandemic and anticipated regulatory changes.
These funds, comprising the Property Unit Trust, Pension, and Life funds, hold a combined £1.8bn ($2.3bn) in assets.
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The closure of the property funds has been approved by regulators, according to the company’s statement, reported Reuters.
The company anticipates a two-year timeline to liquidate the majority of these assets, with investors receiving returns periodically throughout this period.
Invesco Global Real Estate has been chosen to oversee the wind-down process.
SJP group investment director Tom Beal said: “Following the suspension of the fund in October 2023, we have reviewed all options available to us and concluded that the best course of action is to wind down the funds. Doing so over a period of time will allow us to maximise value for our clients.”
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By GlobalDataSt James’s Place had previously halted transactions on its property unit trust fund, while the other two funds had implemented deferred withdrawals and switch-outs.
The company also cited potential regulatory changes, which might introduce notice periods for funds holding illiquid assets like property, as a factor that could dissuade investors from such funds.
Last month, St. James’s Place (SJP) reported its Q3 2024 financial results.
Its net inflows were £890m in Q3 2024, versus £910m of net inflows in Q3 2023. Gross inflows for Q3 2024 stood at £4.4bn, compared with nearly £3.7bn in the prior year.
