Cash flowing into St James's Place

Wealth manager St James's Place revealed stronger than expected levels of new business and fund "inflows" as clients started saving again following government confirmation of tax-free pensions limits, ISA limits and a "brighter economic climate".

SJP's funds under management (FUM) grew by 11 per cent in the third quarter of this year to nearly 25 billion. Net inflow of funds came to 700 million, which was better than the 600m inflow during the same period last year. The FUM figure was buoyed by strong sales of savings and investment products as well as a rally in the value of shares.

The firm said it had brought in 1.1bn in single premiums for investments or pensions - "new money" - in the the latest nine months, up 32 per cent on the same period last year. Total new business of 136.5m for the third quarter was up 30 per cent on the same period last year.

David Bellamy, chief executive, said funds under management had doubled over the past five years. "The markets certainly haven't done the same in the last five years," he added.

Shares in the listed wealth manager, however, fell 2.6 per cent to 265.9p. Barry Cornes, an analyst at Panmure Gordon, said the share price was "weighed down by concerns" about the 60 per cent stake in the firm owned by Lloyds Banking Group and the risk the bank would sell the shares at a discount.