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Bellamy: Product failure ‘almost impossible’ at SJP

David Bellamy

St James’s Place chief executive David Bellamy says product failure at the firm is “almost impossible”, in response to some of the well publicised failures in the distribution market in recent times.

The firm’s half year results, published today, show a 3 per cent rise in partner numbers since the start of the year to 1,702, with 97 per cent at, or close to, the RDR QCF level four qualification.

Bellamy says he is targeting 5 to 7 per cent growth in adviser numbers over the next year and has no concern about any historical misselling issues that are impacting on other large distributors.

Speaking to Money Marketing, he says: “We will not touch some of the products out there, we do not get drawn into structured products. We keep things nice and simple so product failure is almost impossible in our world.”

Bellamy adds SJP is supportive of the SRA’s proposed move to allow solicitors to refer to restricted advisers but does not think it will have a significant impact on adviser numbers. He says: “I think it is a sensible move by the SRA as it is about referring to firms you trust rather than looking at whether they are independent or not.”

The firm announced today its funds under management grew 8 per cent from £28.5bn to £30.9bn in the first six months of the year. However this figure has fallen slightly from £31bn at the end of the first quarter. Net inflow of funds under management fell to £1.51bn, down 8 per cent from £1.65bn in the first half of 2011.

SJP has reported profit before shareholder tax of £58.9m in the six months to 30 June, up 7 per cent from £55.3m in the same period in 2011.

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. I imagine that the lessons of the last 5 years or so would leave most advisers and clients reflecting that “nothing is impossible”. Whilst I appreciate that Mr Bellamy isn’t quite saying this, his confidence is rather striking. I am reminded of an adage.

  2. man on the moon 26th July 2012 at 10:02 am

    Hard to argue with the model. Seems to work.

    Interesting that 97% are near or close – not 97% attained.

    Post RDR the non level playing field will continue.

    Rumour has it that SJP partners are of a mind that the RDR will not affect their commissions or how products are structured.

    Upmarket obfuscation? 100% allocations with payments made by alternative methods??

  3. Bellamy; ‘product failure almost impossible at SJP’

    Ismay; Titanic almost impossible to sink’

    Lightoller; ‘abondon ship’

  4. I would have thought this week’s recent hot spell would have burnt off all the smoke (and mirrors).
    Or is that too much to hope for?

  5. Eh? AIG premier access bond sold as a cash plus fund cost sjp £1m just 2 years ago.

  6. Its not the structured products or ‘non simple’ products SJP should be concerned about. The potential remortgaging of clients properties and re-investing proceeds into Investment Bonds should potentially be the concern. Surely it can only be a matter of time before the cracks start to appear?

  7. Product failure is not the issue with SJP. The problem lies in the fact that they are recruiting former IFA’s who will then switch their client’s existing investments to SJP funds with no good reason for doing so. Of course they will say tha they are switching to a ‘best of breed’ investment proposition based on their association with Stamford Associates and outsouced investment fund management. However, this does not stack up under closer examination.

  8. Does “keeping things nice and simple” include surrendering investment bonds of a former client of mine resulting in a tax bill of £30k. Whoops!

  9. Too big too fail etc – Lehman Brothers

  10. @ Ross Perot – Perhaps if you’d looked after him properly he wouldn’t be a ‘former’ client!

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