British wealth manager St. James’s Place (SJP) has decided to withhold a third of its 2019 dividend or 11.22 pence per share as its AuM slips due to the Covid-19 crisis.
The firm said that it will offer a second 2019 interim dividend of 20 pence per share on 27 May 2020.
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The firm’s total funds under management (FUM) totalled £101.67bn as of 31 March 2020, down 2% from £103.52bn in the previous year.
Equities accounted for the lion’s share of the FUM, constituting 60% of the funds.
Of equities, North American Equities contributed the largest share accounting for 21% of the FUM.
Fixed Interest and Alternative Investments accounted for 18% and 9% of the total funds, respectively.
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By GlobalDataOn the bright side, net inflows increased 9% year-on-year to £2.37bn.
The firm also warned that it is not immune to the global health crisis.
SJP CEO Andrew Croft said: “With the escalation of the COVID-19 crisis during March there was a sharp decline in global markets and this negatively impacted our funds under management, which closed the period at £101.7bn.
“Given the nature of our unit-linked business model, where we match client liabilities with corresponding assets, our balance sheet is largely protected from these steep market declines and therefore our solvency position remains strong.
“Although gross and net flows in April have been robust, albeit below the same month last year, 2020 is shaping up to be another challenging year. Whilst our business is resilient, we are not immune to how the unprecedented level of uncertainty may impact the operating environment for the business and our clients for the foreseeable future.”
