St James’s Place PLC on Thursday reported a strong quarter for net flows despite heightened uncertainty for UK investors ahead of the November government budget, which could change tax rules on pensions.
The Cirencester, Gloucestershire-based wealth manager had £212.36 billion in funds under management as of September 30, surpassing the £200 billion mark for the first time and up from £184.40 billion a year before.
This was thanks to £1.76 billion in net inflows in the third quarter, improved from £890 million a year before. Gross inflows were £5.70 billion, up from £4.40 billion.
Chief Executive Officer Mark FitzPatrick said the performance showed ‘the power of our advice-led business model and the value clients place in the long-term, trusted relationships they have with our advisers’.
FitzPatrick noted that St James’s Place implemented its new ‘simple, comparable charging structure’ over the August bank holiday weekend, completing two years of work.
Back in 2023, just as FitzPatrick was preparing to join St James’s Place as CEO, the company faced pressure from UK regulators to change its fee structure, with critics citing ‘opaque and expensive charges’ for financial advice, as well as ‘stiff penalties’ for early withdrawals.
In the intervening two years, St James’s Place cut staff, halved its dividend, and suffered demotion from the FTSE 100 index, regaining its place six months later.
The company on Thursday said its retention rate was 95.2% in the third quarter, up from 94.6% a year before.
FitzPatrick warned of ‘a more uncertain picture for UK consumers amid soft economic growth, stubborn inflation and heightened speculation around the forthcoming autumn budget’.
St James’s Place shares were down 3.8% to 1,301.10 pence on Thursday morning in London.
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