The UK wealth manager reported strong first-half performance and unveiled a raft of fund manager changes.

St James’s Place boosted its funds under management by 18 per cent year-on-year to £65.6 billion ($86 billion) in the first half of 2016.

The growth was thanks to strong retention of client funds alongside a £3.1 billion net fund inflow. The firm's partnership numbers, at 2,320, are up 2.5 per cent since the start of the year, while its advisor headcount has increased 4.7 per cent to 3,259.

Operating profit grew 7 per cent-year-on-year to £284 million, with net asset value per share at 791.9 pence versus 683.7 pence a year earlier. St James’s Place delivered an underlying post tax cash result of £94.4 million, up 11 per cent year-on-year. Profit before shareholder tax, however, was £60.5 million, down from £67 million in the first half of 2015. 

The firm highlighted potential for further growth in Asia and in the discretionary fund management market, where it has boosted its capabilities through the recent acquisition of Rowan Dartington. The board declared a 15 per cent increase in the interim dividend to 12.33 pence per share.

“Without being complacent about the possible consequences of Brexit, the proven strength in our business model and good momentum in our business gives us confidence in our ability to deliver continued growth in line with our objectives,” said David Bellamy, chief executive at St James’s Place.

“Indeed, I can report that new fund flows since the referendum remain in line with those medium-term objectives.”

Separately, the firm has launched the Worldwide Income fund, managed by Clyde Rossouw of Investec Asset Management in Cape Town, South Africa. It also made changes to its fund management team, subject to regulatory approval.

Fund manager changes

The Far East fund will be renamed the Asia Pacific fund, reducing exposure to Japanese equities and introducing greater flexibility to invest in the broader Asia-Pacific region. Hugh Young of Aberdeen Asset Management Asia will be replaced as investment manager by Alistair Thompson and Martin Lau of First State Stewart Asia.

The High Octane fund will become a global smaller companies strategy, and renamed the Global Smaller Companies fund. Richard Oldfield of Oldfield Partners will be replaced as investment manager by Kevin Beck of Paradice Investment Management, based in Denver, US.

Babson Capital will be replaced on the International Corporate Bond fund by Sheldon Stone and David Rosenberg of Oaktree Capital Management in Los Angeles, as well as the team led by Sandro Näf of Capital Four in Copenhagen.

The team at Tweedy, Browne will be replaced as one of the satellite managers on the Global Equity fund by Ben Leyland of JO Hambro Capital Management. 

Lastly, Jonathan Asante of Stewart Investors will be replaced on the Worldwide Opportunities fund by Jim Hamel of Artisan Partners, and on the Global Emerging Markets fund by Glen Finegan of Henderson Global Investors in Edinburgh. The Global Emerging Markets fund will reopen to new cash flows, the firm said.