St James’s Place has dumped Janus Henderson from its Global Emerging Markets fund after the 2019 exit of Glen Finegan, replacing the asset manager with Somerset Capital Management.
The £930m mandate, which includes the £157.6m unit trust, will now be run by Edward Robertson, one of Somerset’s co-founders, in a move effective from 17 February.
The fund, which Janus Henderson had managed since mid 2016, has significantly underperformed with returns of just 10.5% over the last three years compared to 27% in the MSCI Emerging Markets index, according to FE Fundinfo.
In April, Janus Henderson head of emerging markets Finegan exited the asset manager with his four-strong team to set up his own boutique, Skerryvore Asset Management.
SJP Global Emerging Markets performance
| 6m | 1yr | 3yr | |
| MSCI Emerging Markets index | 0.93 | 13.25 | 26.99 |
| SJP Global Emerging Markets | -7.28 | 3.52 | 10.53 |
Source: FE Fundinfo
Willis Owen head of personal investing Adrian Lowcock said the move made sense due to the disruption from changes at Janus Henderson, although he said the team “were not too well known” under Finegan anyway.
SJP touts Somerset’s disciplined approach
Robertson will construct a concentrated portfolio of around 40 quality companies that he will hold for the long term.
SJP said it had been drawn to Robertson’s “clearly defined investment process and style”. “This disciplined approach is increasingly important in emerging markets given heightened levels of volatility and will be underpinned by the appraisal of four key risks when evaluating investment opportunities – business, financial, valuation and governance.”
SJP chief investment officer Tom Beal said the investment committee and investment consultants Stamford Associates conducted an extensive search for a manager to replace Janus Henderson.
“The focus during this process was on selecting a manager who can identify potential opportunities for high returns on capital irrespective of the market environment, a manager that can grow with St James’s Place’s scale to meet clients’ needs, and a requirement for environmental, social and governance criteria to be embedded as part of their investment approach.”
