St James’s Place PLC’s (LON:STJ) fund inflows recovered in the fourth quarter as pension funds offset continued weak flows from ISA investors.
The final three months of 2019 saw gross inflows of £4bn, taking gross inflows for the whole year to £15.1bn, a 4% decline compared to the year before.
Net inflows of £2.4bn in the fourth quarter contributed to a net £9bbn for the whole twelve months, equivalent to some 9% of opening funds under management, as outflows of £1.5bn were slightly better than expected.
The year ended with funds under management of a record £117bn, up 22% over the preceding 12 months.
“Although uncertainties remain for the UK, the Parliamentary majority following the general election in December provides for longer-term political stability,” said chief executive Andrew Croft.
“Following this outcome, we are encouraged to have seen improved investor sentiment and activity which, together with the strength and scale of our business today, gives us confidence that we are well placed to continue to grow.”
Pension FuM grew 8% in the fourth quarter after a 3% decline in the third, partially offset by continued weak year-on-year growth in ISAs and investment bonds in line with weak UK retail investor flows.
Analysts at UBS said the fourth quarter saw a recovery of flow growth after the decline in the third “driven by a re-emergence of pensions”.
They said it suggested the headwind from lower defined benefit pension transfers “has worked through numbers”.