Wealth management firm announces strong start to the year

Wealth management firm St James’s Place has reported a good first quarter for the year, resulting in client funds under management increasing to £179bn.

The increase  has primarily been driven through a strong period of investment returns.

Funds under management at the Gloucestershire firm  also benefited from £70m of net inflows.

The company came under fire last year over the fees it was charging customers. A series of complaints led to the business undertaking a major overhaul of its fee structure.

Gross inflows of £4bn were modestly lower year-on-year, in part due to the fewer number of working days in March this year ahead of the key tax year end period.

For the year to 5 April, gross inflows are broadly unchanged on the equivalent period in 2023, reflecting an increased level of client activity, albeit with a lower average investment size.

Outflows remain at an elevated level, continuing a trend seen across the industry, as clients continue to draw upon their savings to meet continued financial needs.

Chief executive Mark Fitzpatrick said: “We are making good progress with our review of the business, and I look forward to sharing the outcomes alongside our half-year results in the summer.

“We also continue to move forward with our significant programmes of work to review historic client servicing records and to implement the new charging structure that we announced last October. Both programmes are proceeding in line with our plans and expectations, and the financial guidance associated with each of these remains unchanged.

“While the outlook for the macroeconomic environment remains uncertain, our business is fundamentally in good shape as we continue to build our client base, grow adviser headcount, increase funds under management, and deliver for our clients. This means we are very well placed to capture the highly attractive long-term structural opportunity for the financial advice industry.”