St James's Place reaches record funds under management in third quarter

Wealth management company St James's Place updated the market on new business inflows and funds under management for the nine months ended 30 September on Tuesday, reporting a gross inflow of funds of £11.75bn for the period, up 12%.

The FTSE 100 firm said it saw a continued strong retention of client funds at 96%, with net inflow of funds rising 15% to £7.68bn year-on-year.

Group funds under management stood at £100.6bn at period end, up 11% since the beginning of the year and 17% over 12 months.

Gross flows, at £3.83bn, were 7% higher than the prior year comparator, a pace that was down on the 15% growth seen at the half year stage and against a very strong comparative third quarter last year that saw 28% growth.

“Building on the exceptional growth we achieved over the last two years, I am pleased to report continued growth in the third quarter,” said chief executive Andrew Croft.

Croft noted that, with “continued strong retention”, net flows for the nine months were up 15% to £7.68bn, taking funds under management to a “record” £100.6bn, up 11% since the start of the year and 17% over 12 months.

“We have delivered this continued growth despite both tough comparatives and a more challenging environment for the industry, once again demonstrating our resilience in these market conditions.

“There remains growing demand for high-quality financial advice, notwithstanding the current macro and geopolitical uncertainty,” Croft explained.

He pointed to the “strength and professionalism” of the partnership, as well as the “breadth” of its client proposition, as a “major and sustainable” competitive advantage.

“Consequently, we remain confident in our ability to grow our business in line with our stated objectives over the medium-term.”