St James’s Place saw net inflows fall by 15 per cent between July and September this year with funds under management now £5bn shy of what they were this time last year.
The wealth manager recorded net inflows of £2.19bn, compared with £2.59bn in net inflows during the same period last year.
Chief executive Andrew Croft said the drop in inflows was “modest”, and that despite the “challenging external environment” it was a “strong quarter” for SJP with client retention remaining “very strong”.
Gross inflows fell from £4.32bn in Q3 2021 to £4.05bn in Q3 2022, while funds under management have fallen from £148bn to £143bn.
Net investment return was down 1.3 per cent across the investment, pension and discretionary fund management arms of the business.
"In a challenging external environment, I am pleased to report another strong quarter for St. James's Place,” said Croft.
“At times like these, the focus of our advisers is to remain close to their clients and provide them with timely, personal, and trusted advice that helps them consider and manage near-term pressures while maintaining a long-term mindset.
“This has underpinned gross inflows of £4.5bn, only modestly lower versus a record comparative period in 2021, [and] retention has remained very strong.”
Croft added that although the wealth management industry faces “an uncertain geopolitical and macroeconomic backdrop”, SJP is still “critically placed” to help clients.
The CEO said he expects 2022 “to be another good year of progress” toward its 2025 goals.
When SJP announced its 2020 results, Croft set out a five-year plan.
The ambition is to grow new business by 10 per cent each year, tip funds under management over £200bn and contain growth in controllable expenses to no more than 5 per cent annually.
By 2025, it also wants to be able to pay out around 70 per cent of the underlying cash result in dividends to shareholders.
In the first quarter of this year, SJP saw its funds under management hit £151.25bn, up 11.6 per cent when compared to the same period last year.
But in the second quarter, funds under management dropped by £12bn, despite posting net inflows of £5.5bn.
ruby.hinchliffe@ft.com