Proactive Investors - FTSE 100-listed wealth manager St. James's Place PLC (LON:SJP) has moved to allay upcoming Budget concerns while posting a record amount of funds under management (FUM) in the third quarter.
There have been concerns that tax changes in chancellor Rachel Reeves’ debut Budget on 30 October could negatively impact SJP’s pensions segment, which constitutes more than half of its FUM.
Specific risks include stripping inheritance tax exemptions on pensions and a potential increase in national insurance contributions on pensions.
But chief executive Mark Fitzpatrick downplayed the possible headwinds emerging from the Budget.
He stated: “The macroeconomic environment has improved since the beginning of the year, but there continues to be uncertainty in the outlook for consumers, savers and investors.
“While speculation around the forthcoming Autumn Budget compounds this, we know that our advisers are providing invaluable advice to our clients, helping them to navigate the uncertainty and safeguard their financial futures.”
In the meantime, SJP’s FUM actually exceeded some analysts’ expectations in the third quarter. Closing FUM across all business lines totalled a record £184.4 million, edging out Jefferies’ forecasts.
Net investment returns totalled £1.65 billion, safely exceeding last year’s third-quarter returns of £140 million.