British investors going the managed account route as St James’s Place posts record Q3 assets under management

British retail investors and traders have traditionally differed from their Far Eastern counterparts in that most traded their own accounts, as opposed to connect an automated trading device to their platform or entrust a portfolio manager or signal provider and allow the transactions to be carried out automatically.

If the third quarter operating metrics published by St. James’s Place plc (LON:STJ) yesterday are anything to go by, this may be showing signs of changing as the London-based wealth manager reported record net inflow of investor capital of £1.48 billion which is a 17% increase over the same period last year.

Britain’s investors are notoriously conservative and analytical, theefore entrusting a large, reputable firm to manage their portfolios is to be expected, however the increase in net inflows was also complemented by an 11% rise in assets under management compared to last year.

As of September 30 this year, assets under management by St. James’s Place stood at £54.5 billion. Further alluding to a move toward managed accounts is that although 11% up from September last year, St. James’s Place had recorded an even higher figure two months ago, albeit by just 2%.

The increase in both net inflows and assets under management at St. James’s Place echoes the entire wealth management sector in Britain, with Bristol-based Hargreaves Lansdowne having experienced a similar dynamic.

The increased amount of customer wealth being managed by portfolio managers is apparent despite the downturn in returns across the board, which, it could be considered, alludes toward an increasing preference for advice when it comes to investment management.