St James’s Place share price slides as inflows growth slows down

Group now has over £100bn funds under management

St James’s Place share price slides as inflows growth slows down

Shares in St James’s Place (LON:STJ) have fallen deep into the red in London this morning, with the group revealing that growth slowed down in the third quarter. The blue-chip company, however, disclosed that its assets under management had passed the £100-billion mark during the reported period.

As of 10:29 BST, St James’s Place’s share price had given up 4.28 percent to 990.20p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.25 percent lower at 6,954.98 points. The group’s shares have lost more than 15 percent of their value over the past year, as compared with an over seven-percent dip in the Footsie.

St James’s Place posts results

St James’s Place said in a statement today that its net inflow of funds had grown 15 percent to £7.68 billion in the third quarter of the year, while its funds under management stood at  £100.6 billion,  up 11 percent since the beginning of the year and 17 percent over the twelve months. Gross flows meanwhile were seven percent higher at £3.83 billion during the reported period.

“We have delivered this continued growth despite both tough comparatives and a more challenging environment for the industry,” the group’s chief executive Andrew Croft commented in the statement. “We remain confident in our ability to grow our business in line with our stated objectives over the medium-term.”

 Analysts weigh in on update

“There has been a very slight – 3 percent – miss to gross flows consensus, but we believe that this is in part due to the very tough comparator from last year combined with the state of the market – SJP isn’t immune,” Panmure Gordon analyst Barrie Cornes said in a note to clients, as quoted by Reuters.

“Looking at the gross flows into the business, third quarter growth of 7% is significantly down on the 15% growth seen at the half year stage,” Shore Capital analysts commented, as quoted by Proactive Investors, adding that it was worth noting that “this is on the back of a very strong comparator”.

As of 10:43 BST, Tuesday, 23 October, St. James's Place plc share price is 988.60p.

Top Equities Brokers

0 Brokers added for comparison:
Clear all