St James’s Place continues on its path to redemption
The UK’s leading wealth manager, St James’s Place, has continued on with its work to move past its 2024 downfall, reporting a “strong quarter” as funds under management hit record highs.
Gross inflows increased to £5.7bn, a 30 per cent jump from the £4.4bn recorded the previous year, while net inflows jumped 98 per cent, hitting £1.76bn.
The group credited this jump to “unseasonally high” levels of engagement as customers looked for advice ahead of the upcoming November Budget.
Funds under management surpassed £200bn for the first time, reaching a record high of £212.36bn.
Mark FitzPatrick, chief executive officer of St James’s Place, said: “I am pleased to report another strong quarter for new business, which underlines the power of our advice-led business model.”
FitzPatrick also acknowledged the role economic uncertainty played in pulling in more clients, with the wealth manager prepared to capitalise on challenging conditions.
“The macroeconomic environment presents a more uncertain picture for UK consumers, amid soft economic growth, stubborn inflation and heightened speculation around the forthcoming Autumn Budget.”
Quiet end to the year
However, the company’s share price fell two per cent in early morning trading to 1,326 pence as the company predicts softer flows in the fourth quarter.
FiztPatrick admitted that the heightened levels of engagement may cause flows in the final quarter to “be less strong in comparison”, due to less people needing to access advice.
Despite the expected quiet end to the year, Panmure Liberum held the wealth manager at a ‘buy’ rating, forecasting it will not affect the medium-term outlook.
It expects medium-term profit growth to ‘accelerate’ driven by new pricing structures and cost efficiencies.
The road to redemption
The wealth manager has bounced back from its fall from grace last year, when it was ejected from the FTSE 100, as controversy over customer fees and a compensation pot to cover potential mis-selling damaged its share price.
Since rejoining the leading index at the end of 2024, the group has performed a swift turnaround becoming one of the top performing FTSE 100 stocks.
This included a complete overhaul of customer fees after years of criticism over charges and doubled client inflows in the first half of 2025.
The new customer charges include abolishing its ‘exit’ penalty, which applied to pension and bond products if a customer sold out within six years and split costs into separate parts, including fees for advice, the product and the investment costs.
St James’s Place is now looking to cut £100m of costs by 2027 and generate savings of £500m by 2030, with half to be invested back into the business.
FitzPatrick said: “We continue to focus on delivering for our growing client base and all our other stakeholders.”