Wealth manager St James’s Place boosts inflows in 2018 despite market challenges

Wealth management firm St James’s Place boosted inflows for 2018, it said today, despite difficult market conditions.

The figures

Full-year gross inflows were £15.7bn, eight per cent up on the previous year, the company said in a trading update. Net inflows were also up eight per cent to £10.3bn.

Inflows weakened in November and December and resulted in gross inflows for the quarter of £3.95bn, 4.5 per cent down on the fourth quarter of 2017.

Funds under management dipped by £5bn from £100.59bn at the end of September to £95.55bn at the end of the quarter.

However, funds were up five per cent on the beginning of the year and the firm also reported an eight per cent increase in advisers, taking the total to 3,954.

Why it's interesting

Markets were hit by concerns over tightening monetary policy and economic growth in the fourth quarter of last year, leading to difficult conditions for asset managers. 

St James's Place was affected by weakening inflows at the end of 2018, but in a statement today the company said the business remained "resilient". 

What St James's Place said

St James’s Place chief executive Andrew Croft said: “Against the particularly difficult market conditions that prevailed in the final quarter and compared to an exceptional outcome in 2017, I am pleased to report another good set of results that demonstrate the resilience of our business.

“However, our clients and advisers are not immune to such external market factors and, whilst the quarter began strongly, inflows weakened in the final two months resulting in gross inflows for the fourth quarter of £3.95bn.

“This was a robust performance, though slightly lower than our record fourth quarter last year, and resulted in full-year gross inflows of £15.7bn, which represents growth of eight per cent over 2017.”