St James’ Place says it is still cautious about defined benefit transfers despite seeing an increase in enquiries.
This morning, the firm reported net inflows of funds under management of £4.3bn for the six months to 30 June, up from £3.1bn for the same period in 2016, but says that one of the potential drivers of business, DB transfers is “not without risk” and “complicated”.
Chief executive David Bellamy writes: “In 2017, we have seen further interest from clients exploring the opportunity to transfer out of DB pension schemes, driven by high transfer values being offered to them as low gilt yields inflate scheme liabilities.
“This is a market that is growing rapidly but it is not without risk given the complicated nature of assessing the benefits or otherwise of such transfers. We will continue to approach this market with a degree of caution.”
The national wealth manager continues to grow its adviser numbers, which now stand at 3,540 after a 3.7 per cent increase since the start of the year.
Bellamy says that scaling up advice firms from one man bands is helping them serve customers better.
He says: “As our client base grows, so too does the scale of our partner businesses as they develop from largely single adviser practices, into small and medium size businesses, adding value to the clients they attract and serving them well. We see this as very positive development, which bodes well for the sustainability and succession of our partner businesses, and continued growth.”
SJP now has a total of £83bn in funds under management, returning an operating profit of £397.3m.
Bellamy is set to leave SJP at the end of this year after 11 years at the helm.