Who Manages My Money and How?

When people first start working with us at Birkett Financial Planning, a common question is:

“Who actually looks after my money and how do I know it’s being managed well?”

It’s a fair question. After all, investing is about more than numbers on a screen. It’s about trust, confidence and having a clear sense of how decisions are made on your behalf.

That’s where St. James's Place (SJP) comes in. As one of the UK’s largest wealth management firms, SJP provide the investment management services behind the plans we build with clients.

This blog explains how SJP invests, the steps they take and what it means for you.

The Principles SJP Follow

SJP base every investment decision on four simple ideas:

• Focused on you – their goal is always to help clients achieve their objectives.
• Active decisions – rather than leaving investments to drift, they make informed decisions based on research and evidence.
• Diversification – spreading investments across regions, industries and investment styles helps avoid relying too heavily on any one area. This can help manage risk, although diversification cannot remove investment risk altogether and investments can still fall in value.
• Discipline – staying calm and consistent, especially when markets are unsettled, is an important part of a long-term investment approach.

How Investments Are Built

SJP describe themselves as “builders of solutions”. This means they carefully put together investments step by step.

1. Deciding where to invest (Asset Allocation)

• The first step is deciding how to divide money between different types of assets such as company shares, government bonds, property or other assets.
• The mix of assets plays an important part in both the potential for your money to grow and the level of risk involved. Different assets behave differently over time, and their values can rise and fall, so growth isn’t guaranteed.
• SJP look at the long-term picture for each type of asset, not getting distracted by the daily ups and downs.

2. Choosing who manages the money (Manager Selection)

• SJP don’t run all funds themselves. Instead, they find and appoint experienced fund managers from around the world.
• They spend hundreds of hours checking managers before they are chosen.
• They look at whether a manager has a clear approach, the right skills and evidence that their decisions add value.
• Different managers are blended together, so your money benefits from a mix of styles and ideas.

3. Putting it together and keeping it under review (Portfolio Construction and Monitoring)

• Once the mix of investments and managers is chosen, SJP build them into portfolios.
• They think about things like whether investments are good value, what’s happening in the economy and potential big risks such as global events.
• Portfolios are reviewed regularly. If a manager no longer meets the required standards, they can be replaced.

Strong Oversight

SJP’s investment team is supported by an Investment Committee. This group includes both internal staff and external experts.

The committee sets the rules and checks the work of the SJP investment team. This ensures the whole process is disciplined, consistent and accountable.

SJP do not employ their own investment managers, but select from the best managers around the world, with differing approaches to investment, to manage their funds. The St. James's Place Investment Committee and their in-house team of analysts, assisted by independent consultants, carefully select, continually monitor and, when necessary, replace these managers.

The Different Investment Options

SJP offer a range of investment solutions to suit different needs:

1. Funds of Funds (Polaris, Polaris Multi-Index & InRetirement Funds)

• You invest in one fund, which itself invests in a collection of other funds.
• These are ready-made packages, designed to keep your risk level consistent.
• The funds are automatically adjusted (rebalanced) to stay aligned with your chosen risk level.

2. Portfolios (Growth Portfolios)

• You invest directly in a set of individual funds.
• These are not automatically adjusted, so the level of risk can change over time.

3. Individual Funds (Building Blocks)

• These are funds focused on a specific area, such as UK companies, global smaller companies or corporate bonds.
• They may be managed by one or several managers.
• These are often used as the “building blocks” within other portfolios.

What This Means for You

For clients, SJP’s approach provides:

• Choice – a wide range of options across regions, asset types and investing styles.
• Expertise – access to skilled fund managers worldwide.
• Oversight – regular monitoring and governance of the investments and managers used.
• Spread of risk – your money isn’t tied to one type of investment or one manager. Spreading investments in this way can help manage risk, but it cannot prevent losses if markets or individual investments fall in value.
• Flexibility – different options are available depending on your objectives, whether that’s growth, income or planning for retirement. The right approach will depend on factors including your objectives, how long you plan to invest and how comfortable you are with changes in investment value.

Final Thoughts

Our role at Birkett Financial Planning is to help you choose the right mix of these solutions to fit your life and aims. With a clear plan and disciplined approach, you can feel more confident about the future.

SJP’s role is to provide the underlying investment management, built on a robust process. Their investment approach is about balance: seeking opportunities for growth while managing the risks involved. Investment values will rise and fall over time, so growth isn’t guaranteed and you could get back less than you invest.

By deciding where to invest, choosing skilled managers and regularly reviewing the results, they build solutions designed to support long-term financial goals.

This can give you greater clarity about how your money is being managed and the process behind the investment decisions being made.

Although the content of the article was correct at the time of writing, the accuracy of the information should not be relied upon, as it may have been subject to subsequent tax, legislative or event changes.

Matthew Birkett
Chartered Financial Planner
Birkett Financial Planning