Wealth manager suspends its £820m property fund

Wealth management firm St James’s Place has suspended trading in its £820m property fund.

The Gloucestershire firm said it has taken the decision due to a fall in demand in the commercial property sector.

The suspension comes after a number of investors moved to withdraw their cash from the fund.

As a result of the suspension people will no longer be able to invest or take their cash out of the fund.

The Cirencester business, which has been under fire over its fee structure in recent months, said the move was a proactive measure to protect the interests of clients’ follow what it said were ‘a number of challenges’.

The wealth manager added that some of its clients had ‘increased withdrawals’ from the fund and had limited their investments.

The firm said that the fund’s cash levels have fallen to a low enough level that it needed to take action.

Tom Beal, director of investments at St James’s Place, said: “We have taken this step to protect the interests of clients.

“A combination of factors has led to our decision to suspend dealings in the property unit trust.

“During this period of suspension, we will be assessing market conditions and closely monitoring valuations of properties within the fund.

“We are committed to resuming dealing as soon as we are satisfied that conditions are right.”

The firm also announced it has decided to defer redemptions from two of its other property funds.

The share value of St James’s Place has slumped in recent months following criticism of its fee structure.

The company recently announced it is making changes in how much it charges its customers for its services following pressure from the regulators.