St. James's Place Share Discussion Threads

[fenners66] 16/12/2023 12:30

Just read the article about charging base rate +3% for loans to buy out partners.
It's a bit one sided as these loans would have been just as high or higher rates in the
past , SJP has been around a lot longer than low interest rates.

So really its not the interest rate on the loan that is the problem but the price charged.

I guess that for some will be them trying to recover the amounts they paid whilst interest
rates were so low. Commodities over priced because of low borrowing costs.

SJP should not be raising funds to help out here - they invest in markets and surely see
the benefit of market forces at work.

Their members "franchises?" should just sell at the new lower market rate and tough it
out. Tough luck your investments CAN go down as well as up - as they are fond of telling
retail investors.

Problem is these "advisors" have got used to the life of the one way bet. Commission if
your investments go up , commission if they go down.

The true question though - is do they need these independent or tied advisors at all ?
There is the internet now - just make your product compelling and let people come to
you. Any truely independent advisor can send people too and still get commission.

[dexdringle] 15/12/2023 15:06

....well I think that's a bit pessimistic. But the price here (at £12 +) was supported by the actual profits and the expectation of greater future profit. And the latter has taken a bashing.

It's anyone's guess what a fair price is. It'll be somewhere between £6 and £12.

[chutes01] 15/12/2023 14:30

looks all over here for shareholders

[action] 15/12/2023 13:55

I should avoid this to buy even 8f it drops to years low. Need more clarity from BOD.

[action] 15/12/2023 13:44

Next target 614p

[tim 3] 15/12/2023 10:54

Thanks for your kind words.

A bit of luck involved timing wise but felt really confident about the buy at the time.

Will continue to hold as it has a decent yield locked in and I think there is still potential for further capital gain if interest rates drop as seems likely now particularly stateside after the feds words the other day.

Cheers.

[action] 15/12/2023 10:46

Not looking good as existing partners do not want to takeover books from retiring partners

[action] 15/12/2023 10:44

St James's Place to raise up to one billion pounds tp buy out partner firm as per ft

[dexdringle] 15/12/2023 10:33

The strangest thing is that they were around 1700p each just 18 months ago.

[action] 15/12/2023 09:31

Strange again below 700p instead if 750p

[quepassa] 14/12/2023 11:37

Hear hear!

Stunning trade and perfect timing.

Well done, Tim.

[action] 14/12/2023 10:26

Well done Tim with your treasury purchased at 87p. Now 100p

[action] 14/12/2023 10:25

750p 1st stop. Next 800p plus

[inv] 14/12/2023 10:16

Up over 800p with interest rate predictions. Gilts rising

[tim 3] 11/12/2023 23:30

Lots of adds popping up recently offering compensation if you have invested with SJP.

Not a fan of this compensation culture personally but may see an increase in claims?

[freedomexpress747] 11/12/2023 22:55

Problem in a nutshell is that markets have been flat for the last 2 years and high charges hurt!! Thus is no problem for smart industry people, and investors, looking at annuities, low cost funds, long/short funds.SJP innovate or die... capitalism is like that.

[dexdringle] 11/12/2023 10:30

This BB seems to have died on its ass. A bit like the SJP share price.

[dexdringle] 07/12/2023 20:05

Any chance of a translation to English jim ?

And what the hell are BSD's and MOTU's ? 🤣

[jubberjim] 07/12/2023 17:26

Somerset capital

Seem to be wreaking their revenge and are biting back

Does not look good but unfortunately BSDs & MOTU take a long time to wake up to a new reality

Don t bite the hand that feeds you here endeth the lesson

[dexdringle] 12/11/2023 17:29

SJP have fallen from around 60th place to 97th place in the FTSE 100. It isn't too much of a stretch to see them ejected at some point....

[dexdringle] 12/11/2023 14:58

Yes I suppose if you borrow to buy a bunch of clients, and they switch off their ongoing advice fees, you are in trouble. Although 20% or more would have to do that before your loan repayments were not covered by the remaining continuing advice fees. Also, I think SJP refund the cost of the client in some way if they cancel / transfer within 18 months as some of the consideration is held back to cover this.

We still don't know what JGoldby's issue was.....

[dassera] 11/11/2023 11:10

Spot on dexdringle. One problem is that advice fees are being switched off for clients that haven't received a recent review, e.g. gone-aways, clients who are time-poor or unresponsive. Higher interest rates have also impacted on affordability. SJP's ongoing work on consumer duty will clean up the client base massively, which should in turn support valuation multiples going forward.

[dexdringle] 08/11/2023 14:25

It's okay. Assuming you are talking about SJPs accounts, I know they advance monies for advisers to buy batches of clients. So they have an asset in their accounts for monies owed by advisers.

The batch purchase cost is something like 6 x 0.5% trail. So buying clients with £10,000,000 of FUM costs approximately £300,000. The trail for those is £50,000 per annum. An adviser might borrow, say, £250,000 and put up the other £50,000 themselves. They then pay back the £250,000 over 7 or 8 years. Repayments of, say, £40,000 per annum (including interest) which can come out of the £50,000 per annum that the buying adviser will then be receiving. Obviously, the adviser needs to have enough wool on his back to have the capacity to service the new batch for the initial 8 years without needing the trail income because it is mostly being used to service the debt. After 8 years the adviser owns the clients unencumbered and can sell them on for £300,000. Surely it's like a mortgage when you end up owning the house ?

Is it not how SJP partners exit and that exit process is a real attraction to joining SJP (as selling a customer base as a stand alone IFA can be tricky) ?

So what, hypothetically, can go wrong when you buy a batch of SJP clients ? Surely this is an optional thing and no one is forced ? And the terms are clear ?

NB I didn't read the whole Times article as it was behind their fire wall.....