St James's PlaceApr 24 2018

SJP assets dip on weaker market returns

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SJP assets dip on weaker market returns

St James's Place saw its net inflows increase to £2.6bn during the first three months of 2018.

This brought the FTSE 100 financial advice firm's total funds under management to £89.91bn - up by nearly £10bn from the same period in 2017.

But weak markets mean that in the short term SJP's funds under management fell from £90.7bn at the end of last year.

SJP's net inflows were up 31 per cent compared with last year while the company had a retention of client funds of 96 per cent.

Gross inflows were £3.91bn, which was up from £3.23bn in 2017.

Andrew Croft, chief executive of SJP, said: "After a record year for new business in 2017, we have maintained momentum in the first quarter of 2018.

"Weaker investment markets resulted in funds under management closing at £89.91bn, marginally lower over the three months but still up strongly over the past year.

"We continue to see a growing market for trusted face-to-face financial advice and believe St James's Place remains ideally placed to meet this need.

"This growing market, together with the strong start we have made to 2018, reinforces our confidence in our ability to achieve our stated objective of 15-20 per cent growth in gross inflows during 2018 and beyond."

In February SJP revealed its profits for 2017 had increased by nearly a third to £186m after seeing record inflows.

Over 2017 as a whole the company saw record gross inflows of £14.6bn.

Last week the FCA reported in the second half of 2017 St James's Place received the most complaints of any advice firm.

Its two arms - St James's Place UK and St James's Place Wealth Management - received 1,503 complaints between them, most of them related to decumulation and pensions.

But this only translated to 4.3 complaints for every 1,000 decumulation and pension policies sold.

Meanwhile Sesame, which is owned by Aviva, received 649 complaints, with 244 of these relating to investments, despite the network closing its wealth management arm in 2015 amid regulatory action. A further 276 complaints against Sesame related to insurance and pure protection. 

damian.fantato@ft.com