24th Jan 2019 07:24
LONDON (Alliance News) - St James's Place PLC said Thursday it expects a rise in funds in 2018 amid improved inflows despite a "particularly difficult market".
The FTSE 100 wealth manager expects funds under management to increase by 5.3% to GBP95.55 billion as of December 31 from GBP90.75 billion a year before. St James's Place North American Equities fund - which makes up 22% of total funds - increased 3.5% to GBP20.7 billion from GBP20.0 billion last year.
The wealth manager's UK Equities fund - which makes up 18% of total funds - decreased by 8.3% over the course of 2018 to GBP17.7 billion from GBP19.3 billion. Fixed Interest funds - 19% of total funds - gained 11% during the recent year to GBP18.6 billion from GBP16.7 billion.
Net inflow of funds under management increased 8.1% to GBP10.28 billion from GBP9.51 billion in 2017, as St James's recorded an increase of 7.5% in gross inflows of GBP15.70 billion from GBP14.70 billion.
The rise in net flows were attributed to the investment manager's "continued strength" in client retention.
St James's Place net investment return during the period shed GBP5.48 billion from fund under management, compared to a GBP6.20 billion investment gain in 2017. Chief Executive Officer Andrew Croft said "lower global investment markets" hurt St James's Place investment performance.
"Against the particularly difficult market conditions that prevailed in the final quarter and compared to an exceptional outcome in 2017, I am pleased to report another good set of results that demonstrate the resilience of our business. However, our clients and advisers are not immune to such external market factors and, whilst the quarter began strongly, inflows weakened in the final two months resulting in gross inflows for the fourth quarter of GBP3.95 billion," said Croft.
He continued: "While challenging market conditions, like those currently being experienced, will slow the pace of fund inflows from time to time, the fundamentals of our clients' financial planning requirements remain unchanged. I firmly believe that, with continued focus on achieving the best possible outcomes for our clients through the provision of trusted face-to-face financial advice and our distinctive investment management approach, we remain extremely well placed to continue to grow our business in line with our objectives over the medium term."
St James's Place reported an rise 8.0% rise in qualified advisers to 3,954 from 3,661 last year.
Shares in St James's Place closed Wednesday at 942.72 pence each. The stock is down 24% over the past 12 months.
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