St James’s Place has cause for celebration after hitting the number one spot for the second year running on the back of an £800m increase in gross sales to £8.3bn for 2015.
More of the same has been the key driver of the FTSE 100 financial services group’s increase in gross sales, according to its marketing and communications director Andrew Humphries.
However, the combination of strong gross inflows, positive investment returns and consistently strong fund retention rates have also helped SJP’s funds under management grow by 18 per cent a year over the past five years, to £52bn at the end of 2014.
Mr Humphries said: “It is sort of business as usual. We have a very simple business model. A number of investors are happy to do it themselves. We think the UK market has investors who value the advice that we provide, and that is exactly what we are focusing on delivering.”
One of the more notable developments over the past 12 months has been SJP’s acquisition of discretionary investment firm Rowan Dartington for £34.2m, adding more than £1.1bn of funds under management to its books.
The move marked a distinct change in the company’s strategy, which was previously to refer customers to other DFMs.
Expanding its wealth management arm remains a fundamental part of SJP’s vision, underpinned by the November launch of the Diversified Bond and Strategic Income funds, according to Mr Humphries.
Like all major industry players, SJP has not been immune from the groundbreaking changes following the implementation of the pension reforms. The new funds were developed for those who intend making use of the freedoms.
He added: “The changes to pensions have led to an increase in demand for face-to-face advice. We welcome the freedoms, but they have introduced a degree of complexity into the market, which clients require help with.”
Following the success of SJP’s adviser academy programmes in London, Manchester and Solihull, the initiative has been expanded to Edinburgh, the UK’s largest concentration of financial services employers after London.
The company recently welcomed into its ranks a group of 31 of the latest graduates to have completed the two-year training programme at the academy.
Mr Humphries said: “Our recruitment of financial advisers has remained strong, and the effort that we have put into our academy has been important for us. We remain committed to training these individuals. It will play an important role in the continued success of SJP.”
The future is bright, in Mr Humphries’ view, although not without its challenges. He said: “We have seen a number of our competitors make reference to the fact that they are looking to replicate our business model – companies such as Old Mutual and Standard Life. Although this might pose a challenge to us, we think that there is enough room in the market for everybody.”
