(Alliance News) - St James's Place PLC on Thursday reported a strong rise in funds under management in the third quarter, attributed to growing customer personal savings and improving consumer confidence.
Shares in the blue-chip wealth manager were 1.2% higher in London on Thursday morning at 1,556.50 pence each, even as the wider FTSE 100 index was down 0.4%.
St James's Place reported GBP148.06 billion in funds under management on September 30, up 25% from GBP118.70 billion a year before and increased 3.0% from GBP143.77 billion three months earlier.
Net inflows during the third quarter improved by 80% to GBP2.59 billion from GBP1.44 billion a year before. Gross inflows rose 42% to GBP4.32 billion from GBP3.05 billion.
The firm's net investment return added GBP1.70 billion to total funds in the third quarter.
"Increased personal savings and improving consumer confidence have provided a favourable market backdrop and this, together with the great work our advisers do in supporting clients with their long-term financial planning, has driven gross inflows," said Chief Executive Andrew Croft.
By asset class, St James's Place North American Equities fund - which makes up 28% of total funds - increased 55% to GBP41.8 billion from GBP27.0 billion at the end of September last year.
The wealth manager's Fixed Interest fund - which makes up 16% of total funds - increased by 8.1% to GBP24.0 billion from GBP22.2 billion. Asia & Pacific Equities - 14% of funds - gained 23% to GBP21.4 billion from GBP17.4 billion.
UK Equities - 13% of total funds - rose 19% to GBP19.8 billion from GBP16.6 billion. European Equities - 12% of funds - rose 40% to GBP17.5 billion from GBP12.5 billion. Alternative Investments - 8% of funds - grew 19% to GBP11.5 billion from GBP9.7 billion.
CEO Croft continued: "There remains uncertainty around the near-term economic and investment market outlook, but our business is in great shape and we now anticipate the rate of gross inflow growth for the second half to be modestly ahead of our previous guidance issued in late July.
"As a result, we expect growth in gross inflows for the full year to be around 25%. Beyond 2021, it is natural that we will see variations in the pattern of new business growth we achieve over time, but our performance this year gives us every confidence in the 2025 ambitions we set out for St James's Place earlier this year."
By Paul McGowan; paulmcgowan@alliancenews.com
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St James's Place (STJ)