Hard times and risky retirement

Even the biggest fish on the advisory market cannot escape the fragile environment of investor confidence. St James’s Place releases third quarter results this morning, which show that gross and net inflows are down from the same period last year.

As always, SJP has seen enviable results in holding funds, and a rebound in the market has helped assets under management to a new record £ 119 billion.

CEO Andrew Croft Doesn’t Draw a Punch: Times are tough, yes, but the company still believes the demand for one-on-one advice will continue to grow to keep PGS models growing for years to come.

PGS reported decreased inflows in a “challenging” trading environment.

Results released this morning show that gross inflows stood at £ 3.05 billion for the third quarter of 2020, compared with £ 3.74 billion for the same period last year.

The net inflows were £ 1.44 billion after £ 2.11 billion in 2019.

An inspection of the PGS business breakdowns showed that there was indeed a net outflow of the £ 10 million investment product.

However, the annuities represented a net inflow of £ 1.19 billion with the equity trust / ISA and discretionary fund management business adding a further £ 0.26 billion.

As CEO Andrew Croft noted, the total outflow for the quarter was lower than for the same period last year.

The fund retention rate was 96.4% for the quarter, up from 95.9% for the same period in 2019.

Managed funds continued to end the quarter with a record £ 118.7 billion, up 5% from £ 112.82 billion.

Croft said, “In a challenging environment, our consultants, their employees and our entire community continued to demonstrate tremendous flexibility during this period, building and maintaining close relationships with customers and with each other.

“I am encouraged that the increase in activity levels will continue towards the end of the quarter in October and activity for this month will be at the same level as the same month last year. Going forward, increased uncertainty related to Covid-19 will affect investment confidence. customers and subsequent decision making.

“Our mid-term and long-term confidence in our business remains unchanged. We are seeing an increasing demand for solid and highly personalized financial planning advice and, given the broad geographic scope and quality of the partnership, we remain in an excellent position to capitalize on this. these opportunities and in To stimulate further growth over time. “

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