St James’s Place PLC was upbeat on Thursday as the wealth management firm reported a positive quarter for fund inflows and said investor concerns about the up-coming UK government budget will keep its client advisers in demand.
Funds under management on September 30 were £184.40 billion, up 1.4% from £181.86 billion on June 30 and up 16% from £158.57 billion a year before.
This was thanks to net inflows of £890 million in the third quarter, down 26% from £1.20 billion in the second but only slightly from £910 million a year before.
The annual comparison was better at the top line. Gross inflows in the recent quarter were £4.40 billion, down from £4.56 billion in the second quarter but up 20% from £3.68 billion a year ago.
The annualised retention rate of funds under management was steady from the second quarter at 94.6%, though down from 95.3% a year before.
St James’s Place has suffered a torrid past couple of years amid regulatory scrutiny of its charges to clients. Its stock has lost half its value since the start of 2022, and the Cirencester, England-based company was demoted to the FTSE 250 index from the FTSE 100 in June.
Shares were up 0.8% to 823.00 pence in London on Thursday morning.
‘We continue to make progress on our cost and efficiency programme, our review of historic client servicing records and the implementation of our new simple and comparable charging structure,’ said Chief Executive Officer Mark FitzPatrick, who took the hot seat last December.
‘We are on track to implement the new charging structure by the second half of 2025, including tiering for both ongoing product and initial advice charges.’
Looking ahead, St James’s Place said there is no change to its financial guidance.
‘While speculation around the forthcoming autumn budget compounds [economic uncertainty], we know that our advisers are providing invaluable advice to our clients, helping them to navigate the uncertainty and safeguard their financial futures,’ FitzPatrick said.
‘With increasing client numbers, sustained net inflows and growing funds under management, our business is performing well and we are positioning for further long-term success.’
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