Business Overview
St. James's Place Plc (LON: STJ) offers wealth management and investment funds management services. Wealth management includes mortgages, investment planning, wills, philanthropy, estate planning, and retirement planning. Investment Funds include pension funds, life funds, Spanish international funds, unit trust group funds, Asia international funds, and international funds. It offers products and services through branch offices, wealth advisors, and online portals to high net worth individuals, wealthy families, and corporates in the UK.

Recent News
On 21^st November 2019, the company announced the appointment of a Non-executive Director, Dame Helena Morrissey, to its Board with effect from 1 January 2020. Helena was the Head at Legal & General Investment Management. She was handling Personal Investing and now she had stepped down from that post. Earlier, Helena was the Chief Executive of Newton Investment Management, which is the global investment manager, from 2001 to 2016.

The company will announce its 4^th quarter new business results on 30^th January 2020.

And, on 27th February 2020, the company will announce its 2019 Preliminary Results.

Q3 FUM (funds under management) and new business inflows update

(Source: Interim Report, Company Website)

The company’s gross inflows in Q3 FY2019 stood GBP 3.74 billion versus GBP 3.83 billion in Q3 FY2018. The company’s net inflows declined from GBP 2.47 billion in Q3 FY2018 to GBP 2.11 billion in Q3 FY2019. The closing FUM (funds under management) in Q3 FY2019 was at GBP 112.82 billion versus GBP 100.59 billion in Q3 FY2018. The company’s annual FUM (funds under management) retention rate was 96 per cent in Q3 FY2019 versus 96.2 per cent in Q3 FY2018. The company’s net inflows/opening FUM declined to 7.7 per cent in Q3 FY2019 from 10.2 per cent in Q3 FY2018.

Share Price Performance

Daily Chart as on 15^thJanuary 2020, before the market closed (Source: Thomson Reuters)

On January 15^th, 2020, St. James’s Place Plc shares were trading at GBX 1,112.5 at the time of writing before the market close (at 8:05 AM GMT), up by 0.01 per cent against the last day closing price. Stock's 52 weeks High and Low are GBX 1,205/GBX 897.80. The stock price has given 14.79 per cent returns during the previous year and 9.19 per cent returns in the last three months.

Conclusion
The company’s inflows of fund could be affected from time to time by external factors that are away from the business control. Therefore, in the short-term period, as the existing external environment stays uncertain, faith towards investing might remain tempered. The political and macro-economic uncertainty could affect some of the investment flows for the company. However, the company is quite confident that the depth, quality and strength of the rising partnership would help them to stay well-positioned. Strategic collaboration, growing numbers of HNWIs and their wealth, and positive outlook towards the equity market of the UK may offer significant growth opportunities for the company. During the three months to the end of September, new and existing clients both accounted for £3.74 billion of new funds. The company has decent partners and its staff which do excellent work in building and maintaining close relationships with clients. The company is also able to report continued strong retention which would benefit the growth of its business.

Based on the decent prospects, we have given a "Hold" recommendation at the current price of GBX 1,106.5 (as on 15th January 2020, before the market close at 8:15 AM GMT).

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