# St. James’s Place 2020 set to be another year of major net inflows

- Link: https://www.directorstalkinterviews.com/st-jamess-place-2020-set-to-be-another-year-of-major-net-inflows/412846485
- Published: 2020-07-28T07:48:50+01:00
- Author: Amilia Stone

**St. James’s Place plc** (LON:STJ), the wealth management group, has issued its
new business and financial results for the six months ended 30 June 2020.

**New investment and funds under management**

· Gross inflow of funds of £7.3 billion (2019: £7.4 billion)

· Continued strong retention of client funds – 96%

· Net inflow of funds of £4.5 billion (2019: £4.4 billion)

· Group funds under management of £115.7 billion (31 December 2019: £117.0 billion)

**Financial highlights**

· EEV new business profit £365.3 million (2019: £386.3 million)

· EEV operating profit £418.7 million (2019: £465.7 million)

· IFRS profit before shareholder tax £221.9 million (2019: £57.3 million)

· IFRS profit after tax £178.1 million (2019: £45.8 million)

· Underlying cash result £114.4 million (2019: £125.1 million)

· Underlying cash basic earnings per share of 21.4 pence (2019: 23.7 pence)

**Other highlights**

· We are now represented by 4,324 qualified advisers across the Partnership

· Achieved a rapid and successful transition to remote working practises in response
to the COVID-19 crisis

· Accelerated the pace of technology investment to facilitate digital processes 
across the Group and Partnership

> **Andrew Croft, Chief Executive, commented:**
> “The first half of 2020 has been an extraordinary period, both here in the UK 
> and across the world, as the COVID-19 pandemic has profoundly impacted all our
> lives.
> We began the year with renewed confidence and momentum in the business as we saw
> investor sentiment rise following the UK General Election in December 2019, but
> this gave way to a challenging external environment in the UK as COVID-19 related
> lockdown and associated social distancing measures impacted the way we and the
> Partnership conduct business. I am, though, pleased to report a robust set of 
> results for the first six months of 2020, which is testament to the resilience
> of our business. This extends beyond the resilience of our business model to include
> our people, the Partnership, our systems and technology, and our finances, leaving
> us well positioned to make the most of the opportunities and challenges ahead.
> Our gross inflows for the half totalled £7.3 billion, which was 2% lower than 
> the first half of 2019. Importantly, retention of existing client investments 
> has been particularly strong, providing for net inflows of £4.5 billion. This 
> is equivalent to 8% of opening funds under management on an annualised basis. 
> These net inflows, together with the impact from investment markets, results in
> closing funds under management of £115.7 billion.
> As the population at large recovers from more than four months of lockdown we 
> anticipate a period of recuperation for the UK. Nonetheless, from what we have
> experienced so far in July, we still expect new business flows for the third quarter
> to be similar or slightly lower in terms of value to the level of flows recorded
> for the second quarter.
> We are then hopeful that, as the country returns from the summer break refreshed
> and ready for a return to the office, and supported by the high levels of client
> service provided by the Partnership since lockdown, we will see momentum build
> through the final quarter.
> Overall then, 2020 is set to be another year of major net inflows as our business
> model proves resilient in a really difficult period. We are more confident than
> ever that we will deliver growth over the longer term given the strengths of St.
> James’s Place and the dynamics of our market.”

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