St James Place inflows soar

24th Feb 2010 08:01

St James Place's funds under management soared by 31% in 2009 to hit a new record as rising stock markets sparked a surge of new money into the wealth manager.Net inflows of funds last year were £2.3bn and funds under management ended the year at £21.4bn, the highest level in its history.On a statutory basis the operating profit, before shareholder tax, fell to £49.9m compared with £64.5m (ignoring one-off items) for the prior year, reflecting the economic conditions and the impact of interest rates on cash balances. Pre-tax profits were £28.5m against a loss of £31.4m.Operating profits rose by 12% to £228.9m on a European Embedded Value basis, with pre-tax profits up to £363.2m (2008: loss of £115.9m)and an EEV new business profits of £155.4m (2008: £123.5m). St James added the recovery in the stock markets in the second six months of the year lifted new business by 20%. Total new business for the year grew by 5%.The dividend for the year rises by 2.5% to 4.5p.