(Adds quote, rivals' results)
LONDON, April 30 (Reuters) - British asset manager St
James's Place will cut around one third of its proposed
final 2019 dividend as its first-quarter assets under management
fell 2% to 101.7 billion pounds ($126.78 billion), it said on
Thursday.
Many UK companies have halted their dividend payments as the
rapid spread of the coronavirus forced countries to impose
lockdowns that brought economic activity to a virtual halt,
raising fears of a deep recession. Volatile markets have also
hit fund management assets.
"With the escalation of the COVID-19 crisis during March
there was a sharp decline in global markets and this negatively
impacted our funds under management," Chief Executive Andrew
Croft said.
Still, net inflows rose 9% to 2.37 billion pounds from 2.18
billion.
The company's rivals Ashmore, Jupiter Fund
Management and Brewin Dolphin also reported a
drop in their assets under management during the period.
Jupiter cancelled its special dividend, but Ashmore and
Brewin Dolphin left their dividends intact.
Larger U.S. peer BlackRock's AUM fell by nearly a
trillion dollars at the end of its fourth quarter due to the
market turmoil.
St James's Place said it will withhold 11.22 pence of its
final 2019 dividend, but will pay the other 20 pence per share
as a second 2019 interim dividend on May 27 2020 to shareholders
on the register on May 11 2020.
($1 = 0.8022 pounds)
(Reporting by Carolyn Cohn in London and Muvija M in Bengaluru;
Editing by Maiya Keidan)