St James’s Place posts rise in net inflows despite Covid-19 hit
St James’s Place today reported a modest rise in net inflows in April but said the coronavirus crisis had continued to dampen new investments.
The wealth manager posted net inflows of 810m last month, up from 800m in the same period last year.
The modest rise combined with positive investment return led to funds under management also ticking up to £108.8bn from £107bn last year.
But gross inflows fell 13 per cent to £1.2bn as the pandemic took its toll on investor confidence.
Overall in the first quarter St James’s Place reported gross inflows of £5.2bn, up from £5.0bn last year. Net inflows also rose from £3bn to £3.bn.
Chief executive Andrew Croft said the reduction in new investments was “natural”, but added the firm had shown strong retention of client investments.
“We are encouraged by the robust gross and net inflows we have continued to experience during May, though the short to medium-term impact of government measures and economic volatility on our flows remains uncertain,” he said.
Last month the wealth manager said it would withhold a third of its planned dividend of 31.2p until the impact of the pandemic was clearer.
The company’s net investment return in the first quarter crashed to negative £17.7bn amid sustained market volatility, with all asset classes suffering.