Decline in net inflows, volatility weigh on assets for St James's Place

(Sharecast News) - St James's Place reported a rise in first-quarter gross inflows and higher funds under management than a year earlier on Wednesday, although net inflows declined and market volatility weighed on assets during the period. The FTSE 100 wealth manager said gross inflows rose to £5.23bn in the three months ended 31 March, compared with £5.14bn a year earlier.

Net inflows fell to £1.53bn from £1.69bn, while closing funds under management increased to £216.94bn from £188.59bn at the end of the first quarter of 2025.

Funds under management fell from £220.01bn at the start of the quarter, reflecting a negative net investment return of £4.60bn, regular income withdrawals and maturities of £1.11bn, and surrenders and part-surrenders of £2.59bn.

The annualised retention rate improved to 95.3% from 95.0%, while net inflows as a proportion of opening funds under management fell to 2.8% annualised from 3.6%.

Chief executive Mark FitzPatrick said SJP had delivered "a good first quarter" despite geopolitical uncertainty and market volatility before the tax year end.

"Against a backdrop of heightened geopolitical uncertainty and market volatility in the run-up to the tax year end, we attracted gross inflows of £5.2bn and achieved strong funds under management retention of 95.3%," he said.

"Together, these delivered net inflows of £1.5bn.

"The decline in global markets during the quarter impacted our FUM, which closed the period at £216.9 billion."

By product, pension funds under management closed at £118.30bn, down from £119.94bn at the start of the quarter, after gross inflows of £2.96bn, net investment losses of £2.65bn, regular income withdrawals and maturities of £1.02bn, and surrenders and part-surrenders of £0.93bn.

Pension net inflows were £1.01bn.

Unit trust, ISA and discretionary fund management assets closed at £55.26bn, compared with £55.95bn at the start of the period, with gross inflows of £1.62bn and net inflows of £0.52bn.

Investment bond assets ended the quarter at £43.38bn, from £44.12bn at the start, with gross inflows of £0.65bn and flat net flows.

The implied surrender rate as a percentage of average funds under management improved to 4.7% from 5.0% a year earlier.

The rate was 5.1% for investment bonds, 3.1% for pensions and 7.9% for unit trust, ISA and discretionary fund management assets.

SJP said North American equities remained the largest allocation within funds under management at £78.6bn, or 36% of the total, compared with £71.3bn and 38% a year earlier.

Fixed income securities accounted for £37.0bn, or 17%, while Asia and Pacific equities represented £31.9bn, or 15%.

European equities stood at £30.8bn, UK equities at £19.5bn, cash at £9.7bn, other assets at £5.5bn and alternative investments at £3.9bn.

"While macroeconomic uncertainty continues, periods like this underscore the enduring value of high-quality financial advice," FitzPatrick said.

"Our advisers provide reassurance and help clients navigate market conditions, ensuring they remain focused on their long-term financial goals."

He said the "strength and quality" of SJP's partnership, together with its advisers' client relationships, positioned the company to grow and capture a long-term market opportunity.

At 0906 BST, shares in St James's Place were down 5.47% at 1,184p.

Reporting by Josh White for Sharecast.com.

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