St. James’s Place (SJP) has made a series of portfolio adjustments as it heads into 2026, seeking to strengthen diversification, improve risk-adjusted returns, and enhance resilience in a late-cycle market environment.

The firm’s investment team has introduced an allocation to emerging market debt (EMD) across the portfolios.

While their overall stance on EMD remained neutral, the team felt the asset class was an underrepresented segment of global government bond markets and that it would provide diversification benefits to a portfolio.

SJP’s investment team reduced exposure to higher-risk credit assets in developed markets and reallocated towards UK equities and government bonds.

It argued that these areas offered stronger fundamentals and more attractive compensation for risk, which the team believed would support portfolio stability while maintaining return potential.

These changes have been implemented across fund-of-fund ranges including Polaris 1 and 2, Polaris Multi-Index 1 and 2, and the three InRetirement funds.

“Late-cycle environments demand discipline,” commented SJP director of multi-asset portfolio management, Robin Ellis.

“Our recent portfolio changes reflect a deliberate focus on valuations, diversification and resilience rather than chasing returns.

“By trimming areas where risks are poorly compensated and reallocating towards assets with stronger fundamentals, we believe portfolios are better positioned to navigate uncertainty while remaining focused on long-term outcomes for clients.

“Overall, these changes reinforce SJP’s focus on disciplined portfolio construction. By adjusting exposures across equities and fixed income while maintaining broad diversification, the investment team aims to ensure portfolios remain well balanced, resilient and positioned to navigate a range of market outcomes as 2026 unfolds.”

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