St James’s Place Reports Strong Inflows and Expanding Funds Under Management

St James's Place, a prominent wealth management company, reported impressive net inflows of £890 million over the three months leading up to September 30, marking a continuation of robust inflow trends over the course of 2024. The firm’s retention rate remained stable at 94.6 percent, demonstrating the company’s ability to maintain client loyalty despite significant withdrawals.

Gross inflows for the third quarter were 20 percent higher than the same period last year, although they fell in comparison to the previous quarter’s figures. The three months ending June 30 saw net inflows of £1.2 billion. Despite this decrease, net inflows surpassed analyst expectations by three percent. RBC analyst Ben Bathurst observed that “clients are drawing down slightly more on their assets, but are not walking away from the business.”

Mark Fitzpatrick, CEO of St James’s Place, reflected on the quarterly performance, expressing satisfaction with the outcomes. “I am pleased to report a strong quarter for the group, demonstrating the power of our business model and the value inherent in the long and trusted relationships our advisers enjoy with clients,” he stated.

Fitzpatrick also pointed out improvements in the macroeconomic environment since the start of the year, although uncertainty still lingers for consumers, savers, and investors. By the end of the quarter, funds under management surged to £184.4 billion, a rise from £181.9 billion, edging closer to the analyst expectation of £186.4 billion by year-end.

In a strategic move, St James’s Place announced an ambitious cost-cutting program aimed at achieving savings of £100 million per year over the next two years, with a target to accumulate approximately £500 million in cuts by 2030. Fitzpatrick further noted the company’s progress on its cost and efficiency initiatives, including a review of historic client servicing records and the implementation of a simplified charging model, projected for completion by the second half of 2025.

Commenting on the business prospects, Bathurst characterized the recent financial results as “a further reassuring data point on the ability of the St James’s Place model to deliver healthy growth in funds under management.” The group remains a likely candidate for re-entry into the FTSE 100 index by the year’s conclusion.