SJP drops Pimco and soft-closes two funds

St James’s Place is launching a new UK income fund, and dropping Pimco from the management of its multi-asset fund.

Majedie Asset Management’s Chris Reid will run the UK Income fund, which will be launched on 10 November.

Meanwhile the Multi Asset fund will be managed by teams from US-based Payden & Rygel, Invescpo Perpetual and  Schroders. The fund’s objective of income and capital growth over the medium term remains the same.

According to its latest factsheet, the £277.3m Multi-Asset fund was managed by Pimco’s Mihir Worah.

The firm’s chief investment officer and bond management boss Bill Gross abandoned the firm suddenly for Janus Capital on Friday.

The £341.3m St James’s Place Allshare Income unit trust and £490.5m Diversified Income fund have been closed to new investment.

St James’s Place chief investment officer Chris Ralph says the new blended management of the multi-asset fund is “exciting”.

“The new structure allows our clients to benefit from the combination of the three teams’ different skills and approaches and the potential for strong returns and greater capital protection over the medium term,” he explains.

“Payden & Rygel is another fund manager with which St. James’s Place has an exclusive relationship in the UK retail market.”

The new arrangement will also mean the external management charge will fall, he adds.