Change and continuity
SJP has not ruled out further acquisitions, especially overseas. In 2014 it acquired wealth manager Henley Group, which has offices in Hong Kong, Singapore and Shanghai, and catering for the expat community remains a priority. The Middle East is the next stage forward.
Ralph explains: “A good case might be an individual who gets posted from a major bank in London to Hong Kong for two years, then goes to Singapore for another two years and then back to London.
“We can provide the continuity of wealth management support during that journey. We don’t think anybody is really doing that in a cohesive way. If you are a client of one of the big banks, for example, you tend to get different advisers supporting you in different countries, but we can provide continuity.
“We want to build up in the Asian region, then potentially next year look to do something in the Middle East where there is a similar expat opportunity.”
SJP has also been active with its fund range, the model built on outsourcing management to established individuals at other asset management groups. In November, it launched two new funds catering for investors’ insatiable appetite for income.
The Diversified Bond Fund combines the processes of TwentyFour Asset Management with US-based managers Payden & Rygel and Brigade Capital, while the Strategic Income Fund is headed by TwentyFour with Bluebay, Schroders and MidOcean Partners.
Ralph singles out high-yield exposure as key to the success of these vehicles, where he says the managers have been able to take advantage of mispriced securities.
Global gathering
Ralph also boasts of the global exposure across the 35-strong fund range. He says: “We only have 26% exposure to UK equities and giving our clients more access to global managers is something we will want to continue to do.
“In a lower-returning environment, we want to make sure we have funds that are diversifying and can continue to deliver a positive return.”
This diversification includes the Multi Asset Fund, which incorporates exposure to Invesco Perpetual’s Global Targeted Returns, as well as its own UK Absolute Return Fund, a long/short equity portfolio managed by BlackRock’s Nigel Ridge.
There is also the £2.7bn SJP Property Fund, managed by Orchard Street Investment Management, which recently moved to bid pricing as a reaction to the current liquidity crisis affecting the asset class in the UK (see page 8).
