St James's Place net inflows fall again but has market boost

(Alliance News) - St James's Place PLC on Tuesday said net inflows were sharply lower in the first quarter of 2024 from a year before, though down only slightly from the fourth quarter of 2023; however, funds under management increased thanks to investment performance.

Less positively, the wealth manager's FuM annualised retention rate edged down to 94.6% in the recent three months from 95.9% a year before and 94.8% in the closing months of 2023.

St James's Place Chief Executive Officer Mark FitzPatrick noted that while gross inflows slipped only slightly, partly due to fewer working days in the recent quarter compared to a year before, outflows remained "elevated" as "clients continue to draw upon their savings to meet continued financial needs".

The Cirencester, Gloucestershire-based company had GBP710 million in net inflows in the first quarter, down from GBP2.00 billion a year before and GBP770 million in the fourth quarter. Gross inflows were GBP3.97 billion, down from GBP4.17 billion a year before, while outflows were GBP3.26 billion, up from GBP2.17 billion.

With a net investment return of GBP10.13 billion, improved from GBP3.25 billion a year before, funds under management increased to GBP179.04 billion on March 31 from GBP168.20 billion on December 31.

FitzPatrick said St James's Place is moving forward with the new client charging structure that it announced back in October. The changes followed UK regulatory scrutiny of the company's fees.

The CEO also said St James's Place is making "good progress" on its overall business review, and he will provide an update on this with interim results in the summer.

"Both programmes are proceeding in line with our plans and expectations, and the financial guidance associated with each of these remains unchanged," FitzPatrick said.

"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."

St James's Place shares were down 1.1% to 440.00 pence early Tuesday in London. The wider FTSE 100 index was up 0.3%.

By Tom Waite, Alliance News editor

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