St. James’s Place inflows swell as household savings take off amid Covid
Asset manager St. James’s Place has reaped the rewards of a trend toward household savings swelling over the course of Covid, according to figures released today.
The firms said it expects gross inflows to rise 20 per cent in the second half of 2021 as retail investors pour their savings into financial markets in search for higher yielding assets.
Read more: British savings jump during lockdown as UK GDP slips
The forecast came as SJP said it had already sucked in £5.5bn in net inflows in the first six months of the year. Total inflows for the first half of 2021 reached £9.2bn.
The figures reflect the sharp rise in savings contributions among British households since the onset of Covid.
Restrictions on economic activity to curb the spread of the virus has cut household expenditure, while government support schemes and the rapid adoption of remote working has protected incomes and jobs. As a result, consumers have allocated excess funds to savings accounts or purchased stocks and shares.
SJP’s share price shot up 6.17 per cent after the results were published.
Andrew Croft, chief executive officer of SJP, said: “The impact of the pandemic on the timing and value of flows in 2020 and 2021 will naturally result in a variable pattern of year on year growth and normal phasing of business.”
“Taking this into account together with a strong start to July, we anticipate a rate of gross inflow growth for the second half of around 20 per cent despite strengthening comparatives in the latter part of the year.”
“Although there remains inherent uncertainty in the operating environment as the UK and the world at large continues to navigate the pandemic, the results we have announced today show we have made an encouraging start against our 2025 ambitions.”
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