St James’s Place has seen its funds under management drop by £12bn, despite posting net inflows of £5.5bn.
In a statement to the stock exchange today (July 28), the group said its funds under management fell from £154bn to £142.3bn in the six months to March 31 this year.
Chief executive officer of SJP, Andrew Croft, said the first half of 2022 presented “fresh challenges” for individuals wanting to save and invest after a year that saw investment markets rebound.
“Sharply rising inflation, geo-political tensions, domestic political uncertainty and a more uncertain economic outlook, all present risks for those seeking confidence in their future," he said.
North American equity markets, to which SJP has the highest exposure at 33 per cent, or £46bn, have crashed since January, experiencing their worst first half of the year in 50 years according to the Financial Times.
The Nasdaq fell 29.4 per cent in the first half of the year, and the S&P 500 crashed 21 per cent.
The US markets have been particularly hit due to their large exposure to growth tech stocks, which have suffered in the rotation towards value companies.
Looking ahead
SJP expects its full year net flows to be around £11bn, compared with £18.2bn last year.
“[This] would make 2022 our second highest ever year for flows and put the business even further ahead against our 2025 business plan objectives,” Croft said.
“Financial advice is needed now more than ever given the challenges facing individuals, both in the short- and long-term. “
Croft said there are many conversations taking place with clients abut the impact of inflation.
“Many people across the UK will not have experienced inflation running at such levels during their adult lives so our advisers have been working hard to ensure that clients understand how inflation might impact their finances and consider this in the context of their long-term financial plans,” he said.
Pre-tax profit for the period rose to £206mn, from £121mn in 2021, and an interim dividend of 15.59p per share will be paid.
The company gained 70 new advisers in the first six months of the year, bringing the total figure to 4,626, and there are 358 individuals in its academy.
Earlier this year, the head of SJP’s academy, Andy Payne, said it is meaningless unless it contributes positively to SJP’s diversity.
sally.hickey@ft.com
