St. James’s Place PLC (LSE:STJ) reported stronger-than-expected third quarter results, with funds under management exceeding £200 billion for the first time. However, shares fell 3.03% after the company signaled that inflows could slow in the fourth quarter.
Gross inflows reached £5.7 billion for Q3, surpassing analyst expectations of £5 billion and marking a 30% increase from the same period a year earlier. Net inflows came in at £1.76 billion, ahead of the £1.6 billion consensus estimate and nearly double the £0.89 billion recorded in Q3 2024. Total funds under management stood at a record £212.36 billion as of September 30—up 12% year-to-date and around £2 billion above forecasts.
The company reported an improved retention rate of 95.2%, compared to 94.6% a year ago, while net flows as a percentage of opening funds under management rose to 3.9% from 2.2%.
“I am pleased to report another strong quarter for new business, which underlines the power of our advice-led business model and the value clients place in the long-term, trusted relationships they have with our advisers,” said Mark FitzPatrick, Chief Executive Officer.
Despite the strong performance, St. James’s Place warned that fourth-quarter flows may soften. The company noted that Q3 benefited from “unseasonally high levels of client engagement and activity” ahead of the introduction of its new charging structure in late August, while macroeconomic uncertainty continues to weigh on consumer sentiment.
The firm also pointed to strong investment returns, with year-to-date gains representing 12% of opening funds under management on an annualized basis. It recently launched the Polaris Multi-Index fund range, applying its active asset allocation expertise within index-tracking strategies.
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