The total gross inflows for the quarter were £2.45bn ($3.54bn, €3.15bn), while net inflow of funds under management stood at £1.36bn for the first quarter of 2016, up 16% over the same period last year (2015: £2.11bn).
Client retention was at 95% of client funds, the firm said in a statement.
“The fact that the chancellor avoided further changes to pension tax relief and chose to give further encouragement to individual savings through a higher limit for ISAs in 2017, the introduction of a lifetime Isa and reduced capital gains tax, bodes well for the future,” said David Bellamy, chief executive.
Acquired funds under management of £1.26bn relate to the acquisition of discretionary investment manager Rowan Dartington last year.
Numis has now set a ‘Hold’ rating on shares of St James’s Place with a price target of 1000. “AuM (ex Rowan Dartington acquisition) at £60.8bn was marginally ahead of our £60.5bn forecast and £60.3bn consensus estimate,” said the broker.
“We continue to see a decent medium term growth opportunity for the company, but believe this is fairly priced in today, particularly in light of what we forecast to be limited short term growth.”
The wealth management group also acquired Technical Connection and launched an intergenerational mortgage suite.
“We remain focused on achieving the best possible outcomes for our clients, through the provision of sound personal financial advice,” commented Bellamy. “The acquisition of Technical Connection with their specialist technical support services, together with the new St. James’s Place intergenerational mortgage suite, adds to the resources and services that our partners and clients can draw upon to achieve that,” he added.
Technical Connection provides technical support, insight, proposition development and the provision of continuing professional development (CPD) to financial advisers and institutions. The company has supplied technical resource to St. James’s Place since its inception in 1991, and the acquisition adds a team of advisory professionals to SJP.
Centre of business
“Bringing together the experience and innovation of Technical Connection with St. James’s Place’s existing technical support team creates a very powerful centre of business focused technical expertise to enhance the support we provide to our partners and advisers in helping clients to navigate their financial decisions,” commented Bellamy.
Meanwhile, SJP has launched the St. James’s Place Intergenerational Mortgage Range, in conjunction with high street retail bank Metro Bank. The new mortgage range is designed for parents and grandparents who want to support their children or grandchildren in buying their first home.