Shares in British wealth manager St James's Place fell more than 2 percent on Tuesday after it posted slightly below forecast inflows in the first quarter and expressed caution about next week's election. The company, which also provides a range of services through its Partnership network of financial advisers, has benefited from government reforms giving individuals more tax-free savings and freedom over how to use their pension pots.
Net quarterly inflows rose 9 percent from a year earlier to 1.3 billion pounds ($1.98 billion), but came in slightly below the 1.4 billion at the top of a forecast range in a company-supplied poll. "Net inflow slightly lower - being sold on this," said one trader. Chief Executive David Bellamy said in a trading statement the firm was confident about growing its business in line with objectives, in 2015 and beyond.
He said the firm would have a role to play in providing financial advice "irrespective of any changes that may result from the impending general election". David McCann, analyst at Numis, said markets were nervous about any mention of the British election, with the outcome seen as highly uncertain. Left-of-centre Labour is running neck-and-neck in polls with the more rightwing Conservative party, the leading partner in the coalition government.
St James's Place's shares fell to 2-1/2 month lows and were one of the worst performers on the FTSE-100 index. They were trading at 885 pence at 1025 GMT, down 2.4 percent. The firm's funds under management (FUM) rose to 55.8 billion pounds, up 22 percent from a year earlier and up 7 percent since the start of the year. It reported new business on an annual premium equivalent basis of 232.2 million pounds, up 13 percent from a year ago. Eamonn Flanagan, analyst at Shore Capital, remained bullish on the stock, reiterating his buy recommendation. "The scale of the FUM ... and the net inflows ... remain outstanding and underpin the growth characteristics and dividend-paying ability of the group."