Cash continues to flow at St James's Place
By Rob Freeman | 28th July 2020
St James's Place has outstripped predictions of analysts to post an increase of net cash inflows over the first six months of the year.
The Cirencester wealth manager's figures to the end of June show net cash inflows rose two per cent to £4.5billion, up from the predicted £4.4billion - the same as last year's figure.
The gross inflow of funds dropped from £7.4billion to £7.3billion as 96 per cent of client funds were retained, leading to a total of funds under management of £115.7billion - down from £117billion at the turn of the year.
That all added up to an EEV (European Embedded Value) new business profit of £365.3million (down from £386.3million) and operating profit of £418.7million, as opposed to £465.7million a year ago.
Chief executive Andrew Croft said the results were a "testament to the resilience of our business" after the impact of coronavirus.
He said: "I am pleased to report a robust set of results... leaving us well positioned to make the most of the opportunities and challenges ahead.
"We anticipate a period of recuperation for the UK. From what we have experienced so far in July, we still expect new business flows for the third quarter to be similar or slightly lower in terms of value to the level recorded for the second quarter.
"We are hopeful that, as the country returns from the summer break refreshed and ready for a return to the office, and supported by the high levels of client service provided by the Partnership since lockdown, we will see momentum build through the final quarter."
He continued: "Overall, 2020 is set to be another year of major net inflows as our business model proves resilient in a really difficult period.
"We are more confident than ever that we will deliver growth over the longer term given the strengths of St James's Place and the dynamics of our market."
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