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Great ideas update: St James’s Place
St James’s Place (STJ) 998p
Gain to date: 29.9%
Previous Shares view: 769.5p, 07 Jul 2016
Wealth manager St James’s Place (SJP) continues to reward our faith after we highlighted a buying opportunity created by the Brexit-related sell-off. In fact the result of the EU referendum appears to have been a positive for the business which reports (25 Oct) third quarter assets up 8.9% thanks to robust demand for advice in the wake of the vote and amid low interest rates.
The slide in sterling has helped boost UK shares and thus the value of its assets and the company says it is yet to see any weakening in investor sentiment. The £5.1bn cap has proven resilient during previous periods of economic and stock market turbulence, partly due to its focus on high net worth clients with £50,000 and £5m of investable assets. Shore Capital reiterates its ‘buy’ recommendation on the stock and comments: ‘Despite considerable political upheaval and market volatility, St James’s Place has issued an excellent Q3, reporting inflows and funds under management which comfortably exceeded both our and the market’s expectations.’ (TS)
The company continues to perform strongly and we see no reason to shift from our positive stance. (TS)