UK’s Impax Asset Management Group announced that St. James’s Place (SJP) will terminate its £5.2 billion ($6.6 billion) Sustainable & Responsible Equity Fund mandate. The decision will take effect in February 2025, subject to unitholder approval at an Extraordinary General Meeting on 9 January 2025.
Impax shares plummeted 20% following the announcement, making it the biggest decliner on the London market. The termination is expected to reduce Impax’s annual revenue by approximately £12.7 million ($1.6 million). According to Impax, SJP’s decision is aimed at diversifying the fund across different investment styles. However, some observers believe the fund’s poor performance may have been a significant factor in the decision.
Trustnet data shows the SJP Sustainable & Responsible Equity Fund has consistently underperformed its benchmark, returning just 5% over the past three years compared to the benchmark’s 17.7% return. The mandate was Impax’s sole partnership with St. James’s Place, further amplifying the impact of its termination on the asset management firm.
St. James’s Place has also faced criticism in recent months over allegations of poor service and customer support, raising concerns that the company could face significant compensation claims. While SJP has yet to provide detailed commentary on its decision to end the partnership, the move reflects ongoing pressure within the financial services industry to deliver stronger returns and improved client outcomes.
The development happens to be a significant blow for Impax, which has built its reputation around sustainable investment strategies. Analysts will be watching closely to see how both firms navigate the fallout in the months ahead.
