UK wealth manager sees drop in profits and partner pay
Group retains 95% of fund business
Despite a 16.5% fall in operating profits, and a drop of 7.8% in remuneration to advisory partners, St James's Place, the UK weath manager, retained 95% of its fund business in the year to December. It also kept 95% of partners working there at the start of the year.
St James's Place is 60% controlled by Lloyds Banking Group, being supported by the government as a result of the credit crisis. The 16.5% drop in operating profits to £204.3m is struck on a European embedded value basis. Profits on standard accounting guidelines fell 16% to £80.7m. Partner remuneration fell 7.8% to £176.9m.
Chief executive David Bellamy said 2008 was a difficult year, following a fall in market values which contributed to a 10% drop in overall funds under management to £16.3bn. In aggregate the funds easily outperformed the market, with more than 53% securing top quartile performance.
The number of advisory partners at St James's increased 7% to 1,340 last year. Eight individuals graduated from its academy, which will continue to train new advisers.
St James's Place is upbeat on its prospects, but its shares fell 5.5% to 172p following news of the drop of profits, with market conditions remaining uncertain.
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