St James’s Places shares jump as firm reports record funds under management
St James’s Place saw funds under management reach record highs in its latest results, as more people choose to plough money into the UK’s leading wealth manager.
Funds under management jumped 16 per cent to a record £220bn, up from £190.2bn the prior year, as the group attracted new clients and kept retention rates high.
Gross inflows increased to £21.9bn, a 19 per cent increase from £18.4bn, while net inflows increased to £6.2bn from £4.3bn.
Customer retention rate remained steady at 94.9 per cent, despite being impacted in the latter part of the year by heightened short-term withdrawals linked to pre-Budget speculation around pensions tax-free cash allowances.
The Board proposed a final dividend of 12 pence per share, and returned £103.9m to shareholders through share buybacks.
The group’s share price jumped 5.6 per cent in early morning trading to 1,330 pence, shaking off a drop caused nearly two weeks ago by the unveiling of a new AI led-investment tool.
Rae Maile, analyst at Panmure Liberum, said: There have been many concerns about St James’s over the last few years: past behaviour, current trading, new pricing, management change and now AI.
“Today’s results confirm how much the market has worried unnecessarily, having ignored for many years that for all the concerns about pricing, customers…were, in the vast majority of cases very happy.”
Maile also hailed the shares as “materially undervalued”.
Attracting customers
The group credited the jump in inflows to the “enduring need and demand for trusted financial advice” as more people look to invest, with the group also implementing a new “simple, comparable charging structure”.
Investors are beginning to become more aware of fees and charges as new players enter the market offering low fees on products in a bid to lure them away.
Analysts credited the group’s transparency on costs to both its inflows and consumer retention.
Hugh Fairclough, partner and head of financial services at RSM UK, said: “While reported revenues reflect the recent positive impact of a simpler, clearer fee model, new business inflows remain robust reaching record closing funds under management.
“Greater transparency appears to be reinforcing client confidence, supporting demand for advice at a time when trust, clarity and value are decisive factors for investors.
“SJP’s experience reflects a broader trend across wealth management: as consumers become more fee‑aware, demand is gravitating toward firms that lead on openness. In a volatile macro environment, advice backed by clarity and accountability resonates with both new and existing clients.”
2026 outlook
The Board intends to return 70 per cent of underlying cash, low-risk assets in client portfolios, to shareholders in the next financial year, comprising of an anticipated dividend of six pence per share and a further share buyback programme.
The FTSE 100 giant also noted that while the “external consumer outlook remains uncertain” as people continue to grapple with the cost of living, the company is positioned for long-term growth and to capture market opportunities.
Mark FitzPatrick, chief executive officer of St James’s Place, said: “We’re building on this foundation by investing further in our capabilities, including enhancing the technology and tools available to our advisers.
“The goal is simple: to free our advisers to focus on what they do best, building trusted relationships and delivering truly invaluable advice.”