St James's Place inflows narrow despite record funds under management

St James's Place reported gross inflows for 2023 of £15.39bn on Thursday, down from £17.03bn in 2022.

The FTSE 100 company said net inflows for the same period amounted to £5.12bn, down from £9.78bn, while closing funds under management rose to a record £168.2bn from £148.37bn year-on-year.

Its funds under management retention rate for 2023 was 95.3%, slightly lower than the 96.5% recorded in 2022.

Net inflows as a percentage of opening funds under management for 2023 were 3.5%, down from 6.4% in the previous year.

The number of qualified advisers at the close of 2023 was 4,834, increasing from 4,693 in 2022.

Chief executive officer Mark FitzPatrick said he was satisfied with the company's new business performance, particularly in the final quarter.

He said SJP advisers attracted £3.7bn of new client investments during the period.

FitzPatrick also noted that while there was a strong demand for trusted face-to-face financial advice, the economic environment and short-term alternatives such as cash deposit and savings rates had affected client capacity and confidence for long-term investments.

The SJP Cash Deposit Service managed by Flagstone saw significant growth in client deposit balances, reaching £3.9bn by the end of 2023, up from £2.5bn in December 2022.

The company's IMA performed well in 2023, delivering strong investment returns compared to peers.

That, coupled with ongoing net inflows, led to a record-high funds under management of £168.2 billion.

“As we build on the strong foundations we have established over three decades, we continue to see a huge opportunity to support more clients who need help and advice,” Mark FitzPatrick said.

“I want SJP to capture this long-term opportunity, so as we start planning our vision for 2030 I am reviewing all elements of our business to ensure we are fully fit for the future and best placed to keep delivering for all our stakeholders.”

At 0846 GMT, shares in St James’s Place were down 10% at 609p.

Reporting by Josh White for Sharecast.com.