St. James's Place PLC has released an update on new business inflows and funds under management for the first quarter of 2024. The company reported a growth in client funds under management (FUM) to £179.0 billion, primarily driven by a strong period of investment returns and net inflows of £0.7 billion. The gross inflows of £4.0 billion were slightly lower year-on-year, partly due to the fewer number of working days in March. The company also noted that outflows remained at an elevated level, reflecting a trend seen across the industry as clients continue to draw upon their savings to meet financial needs.
The Chief Executive Officer, Mark FitzPatrick, expressed satisfaction with the performance, stating, "I am pleased to report a good first quarter for the year, resulting in client funds under management (FUM) increasing to £179.0 billion." He also highlighted the company's progress with its review of the business and its significant programs of work to review historic client servicing records and implement a new charging structure. FitzPatrick emphasized that the company's business is fundamentally in good shape, positioning it well to capture the long-term structural opportunity for the financial advice industry.
The company provided a detailed breakdown of funds under management, including an analysis of FUM by geographical and investment type. The table showed that North American equities accounted for 36% of the total FUM, followed by fixed income securities at 16%, and European equities at 14%. Additionally, the company reported a retention rate of 94.6% and a net inflows rate of 1.7% of opening funds under management, both on an annualized basis.
St. James's Place PLC also disclosed that it is making progress with its review of the business and is on track with its programs of work, with financial guidance associated with each remaining unchanged. The company remains optimistic about its outlook, despite the uncertain macroeconomic environment, as it continues to build its client base, grow adviser headcount, increase funds under management, and deliver for its clients.