St. James’s Place profits dented by RDR

St. James’s Place failed to make a profit from its distribution arm in the first half of 2011, citing the impact of the Retail Distribution Review (RDR), although group operating profit was up 13%.

Compared to a profit of £5.9m for the equivalent period in 2010, the firm's distribution arm returned zero profit due to lower adviser remuneration across product categories ahead of the Retail Distribution Review (RDR).

However, the group's overall operating profit for the six months to 30 June stood at £183.6m, up 13% from last year's figure of £162.1m. New business profits increased 27% from £100.9m to £127.7m.

Meanwhile, the firm saw net inflow of funds surge 13% from £1.5bn in 2010 to £1.7bn. Funds under management grew 8% since the start of the year and 30% over the twelve months to £29.1bn.

Its interim dividend payment was also up 58% to 3.2 pence per share.

Chief executive David Bellamy said the firm will broaden its investment proposition this year with the addition of three new fund managers when it launches its new Global Equity fund.

It will also re-launch the St. James's Place Academy to supplement recruitment activity.

"Despite the continued economic and market uncertainty, our business is in great shape and we are confident about our future prospects," said Bellamy