Upmarket wealth manager St James’s Place today said investors were getting to grips with the “new normal” of economic turmoil, low interest rates and high taxes as it posted record fourth-quarter figures.
The company said investors no longer feared Europe’s debt crisis and were willing to part with their money again following an uncertain few years.
“If you look at the first half of 2012, it was categorised by fear,” said chief executive David Bellamy. “Investors were worried about Europe and equity markets swinging violently.
“People seemed more likely to hide money under their pillows than invest.” However, he added: “I’m not sure whether it was down to the Jubilee or the Olympics but things became a lot more positive in the second half.
“Investors realise that interest rates are going to remain low and the tax burden isn’t going anywhere. They also realise they are going to live longer and need to save and invest.”
FTSE 250 group St James’s Place, which sells products to people with at least £100,000 to invest, saw new business sales rise 46% to £223.8 million. Its funds under management stand at £34.8 billion.
There was “nothing to say” on Lloyds Banking Group’s plans. It owns a 60% stake in St James’s Place, which analysts expect it to offload this year.
