St. James's Place Share Discussion Threads

[jakleeds] 30/4/2024 17:45:26

“ The whole wealth management industry is suffering lower inflows and higher withdrawals “

Really ?

Hargreaves Lansdown, the UK’s largest DIY investment site, reported £1.6bn of net inflows over the first three months of the year on Tuesday — in line with last year. And SJP rival Quilter last week reported £810mn of net inflows over the quarter — about double the previous year’s.

[dexdringle] 30/4/2024 15:35:48

The whole wealth management industry is suffering lower inflows and higher withdrawals. But the last 3 months has still seen net positive inflows and FUM up £10bn.

If SJP make, say, 0.75% of FUM with their Product Fees that's an extra £75 million per annum revenue just from the Q1 FUM change. As many overheads are fixed, a doubling of FUM equals a trebling of profit.

Jeez, there's no pleasing some people 😂

How the share price isn't over £6 is beyond me.

[jakleeds] 30/4/2024 13:53:34

So net inflows down around 65% and outflows are ‘at an elevated level’.

How the share price is still above 4 quid is beyond me….

[dexdringle] 30/4/2024 09:29:14

Net new money was £0.7bn but FUM increased by £10bn. Meaning over £9bn of growth. Which is around 5.2% overall investment growth for clients (net of charges) in just three months.

[dexdringle] 30/4/2024 09:00:04

"The net asset value on the European Embedded Value basis at 31 March 2024 was approximately £15.06 per share (cum div) and approximately £14.98 per share after the payment of the proposed final dividend on 24 May 2024"

If this isn't a takeover target at current prices then I'm a monkeys uncle.

[molatovkid] 30/4/2024 07:10:19

Business as usual then !

In my experience as a financial adviser for 25 years, what gets people in through the doors wanting their money out of investments en masse, are the global financial meltdowns that dominate the press and TV. Something like SJP's problems most won't even know about nor understand and in many cases nor care.

[dexdringle] 27/4/2024 09:23:38

《《298;"Analysts are not certain it will be able to, not yet anyway, with a prediction by one broker recently that a £426 million provision is likely to be around HALF THE AMOUNT FINALLY REQUIRED"》
2299;》

....and I wonder what all of the other 'brokers' are saying 🤔

[jakleeds] 27/4/2024 08:25:33

St James Place complaints to dominate trading update
Published: 12:04 26 Apr 2024 BST
Written by: Philip Whiterow

St James's Place PLC
LSE:STJ

St James Place will be hoping it can soon draw a line under the surge in customer complaints about the wealth manager's charges.

Analysts are not certain it will be able to, not yet anyway, with a prediction by one broker recently that a £426 million provision is likely to be around HALF THE AMOUNT FINALLY REQUIRED.

St James’ share price is down by around two-thirds over the past year, underlining the market’s nervousness and the costs issue will dominate next week’s update.

Longer-term, Canadian bank RBC remains optimistic about St James's Place's future, citing the resilience and attractiveness of its partnership model.

The firm's strategic initiatives under new chief executive Mark Fitzpatrick were commended for positioning the business for sustainable leadership in the increasingly regulated UK wealth market.

How well those initiatives are doing will be something else to note.

[the millipede] 24/4/2024 11:17:39

Counterpoint: I don’t care if the CEO owns shares.

In a business of this size he is an employee not an entrepreneur.

I would like him to do a good job leading the business.

A shareholding makes no difference to this and might, depending, even be a distraction.

[dexdringle] 24/4/2024 09:24:53

Ex-Div tomorrow.

Just 8p a share though so not exactly Christmas.

[dexdringle] 24/4/2024 09:17:52

It should be a job requirement for a new CEO to buy £1 million of shares on day one. And if they don't have £1 million to spare they aren't really FTSE 100 CEO material as they clearly haven't been successful in the past.

When the new guy took over the shares were around £6.50. So he'd now be under water by around £300k and would at least have some idea of how the owners of the business were feeling.

[jakleeds] 24/4/2024 08:33:49

Should be a trading statement here in the next few days, showing Q1 inflows(outflows??) and FUM. Was on 27/04/23.

I expect to see the price drop to £3-£3.50 on the day.

The new CEO still hasn’t bought any shares.

[dexdringle] 19/4/2024 09:37:52

Why on earth would they want to raise cash at all let alone at these levels ? They have the ongoing profits that are no longer being paid out as dividends to fund the fee structure changes and any compo.

If anything, they should be borrowing to do buy backs at this price not selling new shares !

[porsche1945] 19/4/2024 08:25:36

Get ready for dilution, capital raise coming, target price 2.80. Its exit from ftse 100 won’t help.

[action] 17/4/2024 12:43:21

Exd on 25.04.24.

[mdchand] 17/4/2024 11:53:12

This issue here is not the fees, nor even the ability of the client to fully understand the mechanics of any investment (which for an english premier league footballer is a pretty low bar). It's simply whether SJP can show that the client was fully aware of the fees and how they were charged (ie loaded into the plan that amortised out over 6 years). I suspect simply sending the client an illustration (which is never read in my experience) showing how these initial fees would apply in the face of early redemption was ever explained to the client.

SJP will argue that the client had all the information they needed to make an informed decision, but I wonder if the FOS will accept that argument or argue (rightly or wrongly) that the client didn't understand the charges and the onus was on SJP to explain the changes.

If it's the latter, SJP are in big trouble as it opens up the floodgates to every Bond / Pension that has ever been sold.

[the millipede] 17/4/2024 10:16:13

Jak, FWIW I think a more relevant line of enquiry is to ask how much of SJP’s cash has been spent so far this year on refunding charges and fees to complaining clients. And how much of the provision do you think will be used for future complaints.

[dexdringle] 17/4/2024 09:25:06

jakleeds, digging out two year old articles. That's a pretty desperate attempt.

If you have 1 million clients and 1% complain that's 10,000 complaints. Even if half of those are valid Thats 5,000 complaints that might hit the press.

In any event, here's a view of the same case. The SJP adviser sold his client an Octopus EIS scheme investment.

[the millipede] 17/4/2024 08:26:14

Very weird. And very sad. EIS schemes are rarely suitable.

Seems to be advice given by someone acting independently, not for SJP?

[tim 3] 16/4/2024 23:26:18

Hmm something does not sound right about that story.

[jakleeds] 16/4/2024 22:52:54

The storm won’t pass . This is worse than HBOS.

One of their players was exposed - twice - in 2019, in the Times. And then again in 2022 . And they defended him. He’s still trading, living life as a millionaire. Wow.

[muffster] 16/4/2024 17:35:18

I'd venture that your porsche has fallen more in real terms.Don't be an idiot. This storm will pass.