St James’s Place’s funds under management hit a new high at the end of last year, despite net flows in the final quarter being less than the previous year.
The wealth manager’s AUM ticked up 11% over the year to £129bn, compared with £117bn at the end of the previous year. But it recorded slightly lower net flows of £2.3bn during Q4, down from £2.4bn for the same period in 2019.
During 2020 it reported overall net flows of £8.3bn, down from £9bn in 2019.
SJP chief executive Andrew Croft (pictured) described the results as “robust” in “an extraordinary year for individuals, families, business and broader societies across the world”.
He said: “We continued to achieve strong retention of client investments in spite of the unprecedented external conditions, resulting in net inflows of £8.3bn, representing 7% of opening funds under management. This net investment, together with positive investment returns experienced by our clients, provided for year end funds under management of a record £129.3bn, up 11% over the year.”
SJP slows recruitment during pandemic
Croft also said the firm last year slowed the pace of adviser recruitment and paused the intake of new students to its academy programme due to the challenging external environment for many financial advice businesses across the UK.
It added 67 qualified advisers to its books between the end of Q4 2019 and the end of Q4 2020, taking the total to 4,338.
See also: How has the Covid crisis impacted recruitment at DFMs?
Earlier this month, the firm made the “tough decision” to axe 200 roles, representing 10% of UK headcount, from its workforce following a review of its “strategic priorities”.
In October last year, minority SJP shareholder, Primestone Capital, urged the board to overhaul its cost base and address the wealth manager’s “high-cost culture”.
SJP then agreed to review its costs after a “productive and constructive dialogue” with Primestone.
