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(Alliance News) - Wealth management business St James's Place on Wednesday said April gross inflows were "robust", though did come in lower than a year ago, as its partners shifted to managing clients "virtually".
Gross inflows for April amounted to GBP1.17 billion versus GBP1.35 billion a year ago, with net inflows broadly flat at GBP810 million. Closing funds under management totalled GBP108.83 billion.
For the four months to April, gross inflows were GBP5.21 billion, up from GBP4.96 billion a year before, and net inflows were up to GBP3.18 billion from GBP2.98 billion.
"Following record first-quarter new business, we have naturally seen a reduction in new investments as the Covid-19 crisis developed. In light of the need to observe social distancing, the partnership has quickly adapted to managing client relationships 'virtually' and April gross inflows were robust, albeit 13% lower than the same month last year," said Chief Executive Andrew Croft.
"We are encouraged by the robust gross and net inflows we have continued to experience during May, though the short to medium-term impact of government measures and economic volatility on our flows remains uncertain," Croft added.
St James's Place shares were up 5.7% in early trade Wednesday.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.8% at 6,116.77
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Hang Seng: down 0.8% at 23,202.70
Nikkei 225: closed up 0.7% at 21,419.23
DJIA: closed up 529.95 points, 2.2%, at 24,995.11
S&P 500: closed up 1.2% at 2,991.77
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GBP: down at USD1.2306 (USD1.2346)
EUR: down at USD1.0956 (USD1.0978)
Gold: down at USD1,705.62 per ounce (USD1,713.19)
Oil (Brent): flat at USD35.55 a barrel (USD35.61)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
0700 EDT US MBA weekly mortgage applications survey
0855 EDT US Johnson Redbook retail sales index
1000 EDT US Richmond Fed business activity survey
1400 EDT US Beige Book
1630 EDT US API weekly statistical bulletin
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UK Prime Minister Boris Johnson will be questioned by senior members of Parliament over the coronavirus crisis on Wednesday as calls for his key adviser to resign continue to grow, PA reports. Johnson will be quizzed at a Commons committee meeting on the decision of his top aide, Dominic Cummings, to drive from London to Durham during the shutdown. It comes amid a growing revolt in Johnson's party, with at least 30 Tory MPs having now publicly called for Cummings to be sacked or to resign. And a YouGov survey for The Times showed the Conservative lead over Labour dropped by nine points during the Cummings saga, as support for the government fell four points to 44% with Labour rising five points in the week to Tuesday, to 38%. Senior ministers have expressed public support for the defiant adviser but there are reports a number of Cabinet members have privately called for him to be ousted from No 10.
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House-hunter demand jumped 88% across England as the market reopened earlier this month, according to a property website. Zoopla said the weekly increase occurred between May 12, the day it emerged the market in England would reopen, and May 19. The website said demand rebounded particularly quickly in cities along the south coast and in northern England. Zoopla said research among 2,000 people found around 60% of would-be buyers across the UK intend to go ahead with their plans. But around four in ten potential buyers said they have put their plans on hold, citing market uncertainty, loss of income and diminished confidence in future finances as deterrents.
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The European Commission is considering new taxes to help fund a multi-billion-euro stimulus package to help EU countries pull themselves out of the deep recession triggered by the coronavirus pandemic. An EU plastic tax, a tax on digital businesses and the expansion of the European Emissions Trading System are three possibilities to help raise much-needed cash, EU sources confirmed to dpa on Tuesday following a report from the Financial Times. The EU's executive arm is to unveil its official plan, which must garner the unanimous support of the 27 member states to become operational, on Wednesday. Germany and France jointly proposed a EUR500 billion recovery fund last week. Under the plan from the two EU powerhouses, the commission would borrow from capital markets on behalf of the EU. The money would be doled out as grants, and borrowing costs paid back from the bloc's seven-year shared budget.
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BROKER RATING CHANGES
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BERENBERG CUTS PEARSON TO 'SELL' ('HOLD') - TARGET 400 (450) PENCE
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COMMERZBANK CUTS TUI TO 'HOLD' (BUY) - PRICE TARGET 6.00 (4.50) EUR
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JPMORGAN RAISES UNITE GROUP TO 'OVERWEIGHT' ('NEUTRAL') - TARGET 900 (950) PENCE
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COMPANIES - FTSE 100
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British Land Co reported a fall in net asset value as its portfolio value slipped. The property investor's EPRA net asset value per share fell 15% to 774 pence at the end of March from 905p a year ago as its portfolio valuation shrank by 10%. The portfolio valuation fall was made up of a 26% decline in retail properties, due to structural challenges exacerbated by the early effects of Covid-19, while office property values saw an uplift of 2.3%. The fall in valuations led to a loss after tax of GBP1.11 billion for the recently ended year versus GBP320 million the year before. British Land's pretax loss widened to GBP1.12 billion from GBP319 million. As previously announced, dividends have been temporarily suspended, meaning the full-year payout was down 48% to 15.97p. Dividends will resume at an appropriate level as soon as there is "sufficient clarity of outlook". It added that 68% of March rent has been collected, equating to 91% when adjusting for rent deferrals. Chief Executive Chris Grigg said: "Near term, we are expecting the offices market to be more cautious, but we continue to conduct virtual viewings and are encouraged by negotiations we are having. In Retail, given current valuations and the lack of liquidity in the investment market, our focus is on delivering value though asset management, working to keep our places full and exploiting demand for assets which support an online offer."
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COMPANIES - FTSE 250
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Provident Financial also said it has adapted well to Covid-19, adding that its liquidity position remains strong. Regulatory capital was GBP710 million at April 30, equating to a core CET1 ratio of 33.4% and headroom of approximately GBP190 million above the minimum regulatory requirement. This is before taking into account the capital conservation buffer of GBP50 million, the subprime lender noted, which is held to be used in the event of a stress situation. Underwriting standards have been "tightened significantly" in response to Covid-19. As a result, the four months to April has seen Vanquis Bank's new customer bookings reduced by 75%. Moneybarn has remained open to new business throughout the Covid-19 crisis, while lending in Satsuma was temporarily paused. Restarting lending in Satsuma remains "under constant review".
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Soft drinks maker Britvic said it delivered a "robust" first half, entering the Covid-19 crisis with good momentum. Revenue in the half-year to March 31 fell to GBP698.8 million versus GBP769.2 million in the 28 weeks to April 14. However, pretax profit rose to GBP53.6 million from GBP45.2 million as administration costs were reduced to GBP99.9 million from GBP132.8 million. While "confident" in liquidity, the board has decided to defer a dividend decision to later in the year, when the impact of Covid-19 will be clearer. Since mid-March, Covid-19 restrictions have "significantly impacted" Britvic's Out-of-Home category, including on-the-go consumption.
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COMPANIES - GLOBAL
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The New York Stock Exchange, the symbolic heart of Wall Street, reopened its floor Tuesday after a two-month closure due to the coronavirus, with traders donning masks and separated by plexiglas. Stocks surged following the trademark opening bell, which was presided over by New York Governor Andrew Cuomo and NYSE officials – all wearing masks. The NYSE is part of IntercontinentalExchange. While the NYSE is ramping only gradually, the moment was an important one symbolically for Wall Street and the US as the country charts its recovery from the COVID-19 crisis.
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Twitter labelled two Donald Trump tweets "unsubstantiated" and accused him of making false claims Tuesday, a first for the social network which has long resisted calls to censure the US president over truth-defying posts. The move drew a furious response from Trump, who used the platform to accuse Twitter of "interfering in the 2020 Presidential Election". The social media giant targeted two tweets the president posted on Tuesday in which he contended without evidence that mail-in voting would lead to fraud and a "Rigged Election". Under the tweets, Twitter posted a link which read "Get the facts about mail-in ballots" and which took users to a notice calling the claims "unsubstantiated", citing reporting by CNN, the Washington Post and other media. "Trump falsely claimed that mail-in ballots would lead to 'Rigged Election'," the notice contended. "However, fact-checkers say there is no evidence that mail-in ballots are linked to voter fraud."
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Wednesday's Shareholder Meetings
BP
International Public Partnerships
Scotgems
Anglo Pacific
ContourGlobal
Vectura
GoCo Group
Wameja
Sabre Insurance
Keywords Studios
M&G
Trident Resources
Vitec
XLMedia
Sportech
Alpha FX Group
Gym Group
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
