St James's Place shares slide 7% as net fund inflows drop

Shares in FTSE 100 financial advice firm St James’s Place (LSE: STJ) fell 7% by 09:30 GMT as it reported a 47% annual drop in net fund inflows.

The company attracted £5.1bn in net inflows in 2023, down from £9.8bn in 2022. In the last 3 months of 2023, net inflows more than halved to £770m year-on-year.

CEO Mark FitzPatrick said the drop reflects “a difficult industry backdrop” and a client preference for cash and “shorter-term alternatives” amid rising interest rates.

Inflows into St James’s cash service jumped to £3.9bn in 2023 from £2.5bn in 2022.

Assets under management hit a record £168.2bn, up 13.4%, over half in pensions. The company saw net client investment outflows of £7.5bn.

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FitzPatrick said trusted personal advice demand remains strong but the economic climate has impacted client confidence to commit to long-term investments.

He added the company will enhance its future fitness, saying “we continue to see a huge opportunity to support more clients who need help and advice. I want SJP to capture this long-term opportunity.”