Funds under management at St James’s Place Wealth Management hit a record high at £49.1bn boosted by a 50 per cent jump in new Isa investments.
The firm’s quarterly business statement shows total funds grew 17 per cent year-on-year, from £41.8bn to £49.1bn. New business on an APE basis was up 18 per cent in the three months to the end of September, from £179.9m to £212.6m.
New single investments rose 19 per cent year-on-year to £1.8bn from £1.5bn in the same period in 2013.
Net inflows of funds under management also increased in Q3, up 23 per cent on last year – from £1.03bn to £1.27bn.
Chief executive David Bellamy says clients are taking advantage of higher Isa limits introduced in the summer.
In the March Budget Chancellor George Osborne announced the annual limit on ISAs would increase to £15,000 after 1 July.
Bellamy says: “I am very pleased to report that the strong momentum in our business continued into the third quarter, with growth in new business buoyed by a 50 per cent increase in new Isa investments, as clients took the opportunity to capitalise on the higher limits introduced on 1 July.
“This growth, coupled with the consistently high retention of our existing client funds, saw net inflows increase by 23 per cent to £1.3bn in the quarter, bringing our total funds under management to a record £49.1bn.”
Bellamy adds the firm expects “continued growth” as a result of the “increasing freedoms and responsibility individuals have for their own affairs” as a result of the Budget pension reforms.
However, SJP’s new third party sales fell by 20 per cent during the quarter – dropping from £150.3m in Q3 2013 to £120.4m.
This includes group services relating to personal pension schemes, annuities and Sipps.