St James Place AuM swells to over £100 billion

The wealth manager saw assets under management increase by 11% in the third quarter, as capital pours in from new and existing clients amid growing Brexit uncertainty.

City of London
Source: Bloomberg

St James's Place (LON:STJ) continues to see new inflows of capital from new and existing clients increase, with assets under management (AuM) exceeding £100 billion, representing an 11% rise, according to its third quarter (Q3) 2018 results.

The impressive set of results come at a time of immense uncertainty in the financial markets, with the wealth management sector facing increased regulation and macroeconomic headwinds, with Brexit a major concern for UK-based fund managers.

But despite the relatively tough environment, it has seemingly helped, rather than hinder demand for the wealth manager's services. In fact, CEO Andrew Croft said that ‘there remains growing demand for high-quality financial advice, notwithstanding the current macro and geo-political uncertainty’.

The wealth manager saw gross inflows of funds of £11.75 billion in Q3, up 12% when compared to the £10.46 billion recorded in the same period last year. The company has also retained 96% of client funds.

‘We have delivered this continued growth despite both tough comparatives and a more challenging environment for the industry, once again demonstrating our resilience in these market conditions,’ Croft said.

‘With the strength and professionalism of the Partnership [its network of self-employed financial advisers], together with the breadth of our client proposition, we have a major and sustainable competitive advantage.’

‘Consequently, we remain confident in our ability to grow our business in line with our stated objectives over the medium-term,’ he added.

The company’s strong growth in terms of AuM has not been replicated in its share price, with it falling 16% since mid-June. St James's Place share price sits at £9.86 as of 10:35 BST on Tuesday.

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