St James’s Place saw gross inflows of almost £4bn and net inflows of £710m in the first three months of 2024, according to its quarterly update published today (30 April).
Gross inflows fell by 4.8% (£200m) compared to the same quarter last year, which CEO Mark FitzPatrick said was partially the result of fewer working days in March this year “ahead of the key pre-tax period”. It was however an 8.2% uptick compared to gross flows in Q4 2023.
Net flows fell compared to Q1 2023 and Q4 2023 fell by 64.5% (£1.3bn) and 7.8% (£60m), respectively, to £710m for the quarter.
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The annualised retention rate of funds under management for Q1 2024 stood at 94.6%, compared to 95.9% during the same quarter last year, and 94.8% in Q4 2023.
Funds under management as at 31 March 2024 stood at £179bn, compared to £168.2bn at the end of last year. This marks a 6.4% rise in FUM.
CEO FitzPatrick said: “I am pleased to report a good first quarter for the year, resulting in client funds under management (FUM) increasing to £179bn. This has primarily been driven through a strong period of investment returns, as our investment proposition continues to deliver for clients.
“For the year to 5 April, gross inflows are broadly unchanged on the equivalent period in 2023, reflecting an increased level of client activity, albeit with a lower average investment size.
“Meanwhile, outflows remain at an elevated level, continuing a trend we have seen across our industry, as clients continue to draw upon their savings to meet continued financial needs.”
In terms of the ongoing review of the business, the CEO said the management team is “making good progress”.
“We also continue to move forward with our significant programmes of work to review historic client servicing records and to implement the new charging structure that we announced last October. Both programmes are proceeding in line with our plans and expectations, and the financial guidance associated with each of these remains unchanged.”
He added: “While the outlook for the macroeconomic environment remains uncertain, our business is fundamentally in good shape as we continue to build our client base, grow adviser headcount, increase funds under management, and deliver for our clients. This means we are very well placed to capture the highly attractive long-term structural opportunity for the financial advice industry.”
