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Highlights:
- Record Funds Under Management: St James’s Place reported FUM of £184.4 million, surpassing analyst expectations.
- Reassurance on Budget Risks: The company addressed concerns over potential pension-related tax changes in the upcoming Budget.
- Strong Investment Returns: Net investment returns reached £1.65 billion, well above last year’s third-quarter figures.
St James’s Place PLC (LSE:STJ), the FTSE 100-listed wealth manager, has reassured markets regarding potential tax changes in the upcoming Budget, while reporting a record level of funds under management (FUM) for the third quarter.
The company had been facing concerns about potential impacts from Labour chancellor Rachel Reeves’ first Budget on 30 October, particularly regarding its pensions segment, which accounts for more than half of its total FUM. Speculated changes include the possible removal of inheritance tax exemptions on pensions and an increase in national insurance contributions for pension holders.
However, St James’s Place chief executive Mark Fitzpatrick sought to downplay these concerns. Fitzpatrick acknowledged the uncertainty but pointed to the strength of the firm’s advisory network, stating: “Our advisers are providing invaluable advice to our clients, helping them navigate uncertainty and safeguard their financial futures.”
In terms of performance, St James’s Place posted FUM of £184.4 million for the third quarter, in line with City expectations and slightly above some predictions, such as those from Jefferies. The firm saw net investment returns of £1.65 billion, significantly higher than last year’s returns of £140 million during the same period. The announcement saw the company’s shares rise 0.8% on Thursday morning.
