Pensions boost for St James's Place

UPMARKET investment provider St James's Place shrugged off pension woes to record a 19% jump in new business to £40.6m for the three months to September.

It was slightly better than analysts expectations of £39m.

The bumper sales, spurred by a 42% leap in pensions, brought the nine-month new business tally to £131m, a 27% increase on the same period of 2003.

Rising demand for stakeholder pensions underpinned the growth. Regular premiums amounted to £12.5m compared with £8.5m a year before.

'We are delighted with the continuing strong growth in our long term savings business,' said Mark Lund, chief executive. 'This has been achieved across all classes of business.'

'Whilst we are now running against the very strong final quarter of last year, which accounted for 30% of all new business in 2003, we remain confident that our growth in new business will have outperformed the sector in 2004,'

Funds under management were £8.7bn up 10% since the start of the year and up 21% over the previous 12 months.

Even unit trust sales saw a large jump, up 43% for the nine months to £213m compared with £149m a year before. The rise compares with stagnation in the unit trust industry as whole. Figures from the Investment Management Association show sales to private investors had fallen to £2.39bn in September from £2.42bn a year earlier.

Shares in St James's Place had risen 1 1/2p to 178 3/4p by mid-morning.

Useful links