St. James’s Place (SJP) has selected Royal London Asset Management (RLAM) to run its £4.6bn Strategic Managed fund.

RLAM said it would run a bespoke, active asset allocation mandate, which will predominantly comprise of low active risk strategies that aim to minimise tracking errors.

The multi-asset strategy will be continuously adjusted to meet the fund manager’s active strategic and tactical asset allocation views.

RLAM argued that this will help to maintain access to a broad range of asset classes at a lower cost than is generally associated with active management.

The Strategic Managed fund will maintain its objective by investing a minimum of 60 per cent in quoted securities on a worldwide basis.

At RLAM’s discretion, the fund will invest in UK and overseas equities, UK and overseas fixed interest and index-linked securities, units and/or shares in other collective investment schemes, cash, and near cash.

Commenting on the announcement, RLAM chief client officer, Ed Venner, said: “We look forward to partnering with SJP to deliver compelling investment outcomes for their clients.

“We are proud that SJP recognise and value our ability to tailor multi-asset solutions to their specific needs by combining our first-class active investment capabilities with our commitment to client service.”

SJP chief investment officer, Justin Onuekwusi, commented: “We are committed to continuously improving our funds to ensure they deliver the best value for clients.

“The change increases the choice available to our investors – accessing different types of strategies across our multi-asset range of funds.

“The disaggregation of platform and advice charges from our funds later in the year will mean that our investment proposition will be priced on a like-for-like basis and be extremely competitive versus other funds in the market. The Strategic Managed fund is an example of this.

“We are delighted to announce Royal London Asset Management as the strategic partner for this mandate. They were selected due to their experience in managing multi-asset strategies, strong track record, deep resources, and alignment with the fund’s objectives.

“Additionally, the increased use of low active risk strategies means the fund will respond differently to various market conditions, offering clients greater choice and enhanced diversification."

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