St James’s Place has seen net inflows into its business fall by nearly a third in Q3 compared with a year ago amid the challenging Covid backdrop that has seen rival wealth managers plagued by outflows.
Net flows for the period were £1.4bn, a third lower than the £2.1bn brought in over the third quarter last year. New client money coming in undershot analyst expectations that the wealth manager would rake in around £1.6bn over the quarter.
However, money flowing into the business was still higher than at other wealth managers with Charles Stanley, Brooks Macdonald and Rathbones all reporting net outflows in Q3.
Quilter, which is a vertically integrated business similar to SJP, only managed to attract net new business of just £0.1bn in the three months to the end of September.
SJP’s pensions arm recorded the highest net inflows, taking in £1.2bn over the period, while its unit trust, ISA and DFM business Rowan Dartington raked in a total of £0.3bn. But its investment division leaked £0.01bn.
It closed out the quarter with a record £118.7bn in funds under management, up from £112.8bn a year ago and 1.5% higher than its starting FUM in 2020. So far the FTSE 100 wealth manager has seen £6.0bn in net inflows year-to-date.
SJP CEO Andrew Croft (pictured) admitted Q3 had been a “challenging external environment” for its advisers but said SJP had seen a pick-up in activity toward the end of the period which has carried over into October.
“Looking ahead, the increased uncertainty linked to Covid-19 will inevitably influence client investment confidence and consequent decision-making,” he said.
“However, drawing on the experience of the last six months, I am confident that the partnership will continue to adapt to whatever circumstances they face in order to establish long-term relationships with new clients through the provision of high-quality advice and retain clients through maintaining outstanding service.”
