Proactive Investors - Run By Investors For Investors

St. James's Place assets top £100bn after solid start to year

After a solid start to the year for the wealth manager, broker Peel Hunt also upgraded the shares to 'buy'
investment
Funds under management at St James's Place closed the quarter above £103bn

St. James's Place PLC (LON:SJP) reported positive fund inflows in the first quarter of 2019 to lift its assets under management to a record level.

Gross inflows of £3.61bn in the first three months of the year led to net inflows of £2.18bn, which were both lower than the £3.91bn and £2.6bn respectively seen a year ago but in line with market expectations.

READ: St James's Place net inflows slow in 'challenging' 2018

The wealth manager's funds under management closed the quarter at £103.52bn, up from the £95.6bn at the end of December and £89.91bn at the end of March last year, but modestly short of the consensus forecast of £103.7bn. The funds under management retention rate remained high at 95.9%, only slightly down on 96.2% seen in early 2018.

Chief executive Andrew Croft said the positive inflows, continued strong retention rates and record FUM “demonstrates the resilience of our business through the current political and macro-economic uncertainty”.

He added: “Whilst uncertainty will inevitably impact investor sentiment from time to time, it does not change the long-term needs of individuals.  There remains both a growing market for trusted face-to-face advice in the UK and an advice gap that represents a major opportunity for us.”

Faltering just short of a seven month-high, St. James's shares were down a penny at 1,133.5p by mid-morning on Tuesday despite an upgrade from broker Peel Hunt.

Analyst Stuart Duncan said the numbers were "broadly as expected" a "decent" start to the year despite the generally weaker market sentiment, with organic growth rate of net inflows on annualised basis equating to 9.1% of opening funds under management.

With the current share price a discount to reported EEV net asset value of 1,190p and trading on a December 2019 price/earnings multiple of 18.9 times, as well as offering a dividend yield of around 4.5%, Peel Hunt upgraded its recommendation to 'buy' from 'add'.

View full STJ profile View Profile

St. James's Place Timeline

Related Articles

S&U
March 12 2019
"Over the past 25 years, S&U has consistently demonstrated its ability to adapt to the kinds of economic and political uncertainty we all currently face," said chief executive Anthony Coombs.
CSE head office in Toronto
January 01 2019
Capital raised on the CSE set to increase over 500% by the end of 2018
PCF
December 05 2018
“I think we’re a different generation of bank that is a lot quicker on our feet, a lot quicker at reacting to what customers want and are a lot more attractive to the savings market,” PCF boss Scott Maybury said

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use