22nd Oct 2019 08:22
(Alliance News) - St James's Place PLC on Tuesday reported a rise in closing funds under management in the third quarter following strong net inflows to its Pension funds.
At September 30, the FTSE 100-listed wealth manager recorded GBP112.82 billion in funds under management, 3.2% higher than the GBP109.32 billion reported three months earlier. Year on year, St James's Place funds under management are 12% higher.
In the third quarter, the wealth manager recorded GBP2.11 billion net inflows, with GBP1.48 billion of that coming from the company's Pension funds. Investment funds added GBP190 million in net inflows with Unit Trust, ISA & Discretionary Fund Management contributing net inflows of GBP620 million.
St James's Place ended the quarter with GBP50.36 billion in Pension funds, which represents a 4.6% rise over the period. Investment funds rose 1.7% to GBP30.60 billion and UT, ISA & DFM funds increased 2.5% to GBP31.86 billion.
All three fund classes recorded positive net investment return, giving a total return of GBP1.39 billion.
"I am pleased to report another good quarter for St James's Place. Through the excellent work of our partners and their staff in building and maintaining close relationships with clients, we are also able to report continued strong retention, resulting in net inflows for the quarter equivalent to 7.7% of opening funds under management on an annualised basis," Chief Executive Andrew Croft said.
"These positive inflows helped increase funds under management to a record, some 18% higher year to-date. In what remains an uncertain external environment, these figures once again highlight the resilience of our business model and the outstanding role our partners and support staff play in providing for trusted, long-term financial advice to our clients."
Over the nine month period, St James's Place recorded GBP6.55 billion in net inflows with a GBP10.72 billion net investment return.
The CEO believes the political and macro-economic "uncertainty" could hurt the "pace of some discretionary investment flows from time to time" but will no bear no effect on the need for long-term financial planning.
"Indeed, we see demand for sound, personal and trusted financial advice growing while at the same time the 'advice gap' remains," Croft added.
The fund manager believes it is well placed to continue to grow over the medium to long-term.
Shares in St James's Place were 0.9% higher in London in early trading on Tuesday at 1,022.50 pence each.
By Paul McGowan; [email protected]
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