Imagine this: your money is locked away, inaccessible, earning nothing, and meanwhile, the gatekeeper is helping themselves to a tidy fee every single day. Welcome to the St James’s Place Property Fund Experience—where the only thing more outrageous than their charges is their sheer audacity.
The Freeze That Never Ends
Since October 2023, SJP’s £1.84 billion property fund has been frozen tighter than a festive turkey in a broken freezer. Why? Investors were understandably scrambling to withdraw their cash amidst lacklustre performance and uncertainty in the property sector. Rather than adapt or improve, SJP hit the pause button, shutting the door on 120,000 customers.
A year later, they’ve decided to close the fund entirely. Sounds like progress? Think again. Investors have been told they’ll need to wait another two years for their money—yes, two years—while SJP slowly offloads assets.
Oh, and in the meantime? They’ll be charging you for the privilege of having your hands tied.
Paying to Be Locked Out
Since the freeze, SJP’s customers have paid a staggering £47 million in fees. That’s more than £100,000 every single day, or enough to make Scrooge McDuck blush. For this princely sum, investors have received... well, nothing. Their money remains frozen, inaccessible, and—just to add insult to injury—has actually shrunk in value.
Meanwhile, alternatives like the TR Property Trust, recommended by wealth managers like AJ Bell, have grown by 8.8% over the same period. It’s as if you’re being charged for a gym membership while your treadmill is sold off for spare parts.
“Shame on SJP”
Take the case of neuroscientist Shannan Keen. Her mother, Frances, passed away last October, leaving investments with SJP. While most assets were settled during probate, the property fund remains locked. SJP’s response? Reassuring emails about how busy they are. Keen’s verdict? “Shame on SJP. Of course they should stop charging fees and refund everything, plus interest.”
She’s not alone. Frustrated customers like Colin and Catrin Hanks from Conwy have also been left high and dry, their £8,500 stuck in the fund with no access and no recourse. The couple withdrew their other investments, but they remain prisoners of the property fund freeze.
The Price of “All-Inclusive”
SJP likes to tout its “all-inclusive” fee structure, charging 2.35% annually (2.2% during the freeze—how generous!). For pension and life insurance investors, the fee rises to a chunky 2.5%, without even a discount for their troubles. Compare that to the industry average of 0.9–1%, and it becomes clear why SJP is so keen to keep those charges rolling in.
And let’s not forget, these fees are levied on shrinking assets. Over the last year, the fund’s value has fallen by 2.4%. Customers are quite literally paying to watch their money disappear.
The Property Fund Pantomime
SJP claims the property market is under “long-term pressure” due to the pandemic’s impact on office demand. Fine. But other firms—Aviva, M&G, Canada Life—have faced the same challenges and managed to return funds to investors. Even Columbia Threadneedle and L&G reopened their property funds after temporary suspensions.
So why can’t SJP do the same? The answer, as ever, seems to be that keeping your money locked up is far more profitable for them.
A Final Insult
As we roll into another festive season, SJP has promised that unit trust customers should receive their first repayment by the end of the year. It’s a bit like handing out Christmas crackers at Easter. Meanwhile, income payments from the fund will continue—if you’re lucky enough to be receiving one.
But make no mistake: this is a slow and painful process, dragged out over two years, all while fees keep draining your account like a leaky tap you can’t turn off.
Where’s the Accountability?
The whole saga begs the question: how is this even legal? Customers entrusted their money to SJP in good faith, only to be locked out and left to foot the bill. Worse, there’s no sign of SJP voluntarily refunding those fees, let alone adding interest to compensate for their clients’ financial limbo.
Until regulators (cough... that means you FCA, though they are your number one revenue payer!!) step in—or customers vote with their feet—SJP will continue to rake in millions while investors wait, fume, and watch their savings dwindle.
In the meantime, SJP investors might want to start drafting letters of complaint—or perhaps writing to Santa. Because at this point, a Christmas miracle might be the only way to unlock their frozen funds.
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