St James’s Place smashes expectations in final quarter

A surprisingly strong final quarter has pushed assets to record levels at St James’s Place (STJ). 

The wealth manager achieved net inflows of £1.5bn in the three months to 31 December, against estimates of £0.9bn. Across 2024 as a whole, inflows reached £4.3bn, lower than last year but better than the market expected. Investment returns also “compared favourably against peer groups”, helping to drive total funds under management up by 13 per cent to £190bn – a record for the group. 

St James’s Place said the autumn Budget “created uncertainty for UK consumers” and led to an increase in both inflows and outflows in October. Investment platform AJ Bell (AJB) reported similar client behaviour. However, analysts at Panmure Liberum said the increase in the gross inflows at St James’s Place was broadly cancelled out by redemptions, “making little difference to the net flow performance”. 

In the two months that followed the October Budget, however, there were high levels of engagement, as clients sought advice on what Labour's changes meant for their money.

St James’s Place is poised to introduce its new charging structure in the second half of 2025. The group was pushed to make its pricing more transparent after scrutiny from UK regulators. Early withdrawal fees are to be scrapped on new bond and pension investments in favour of an explicit initial charge and a clear breakdown of what the charge comprises. 

This is expected to hit margins, and implementation costs are forecast to be £140mn-£160mn. Client activity remains high for now, however, and management has not made any change to its financial guidance. The group intends to publish its full-year results on 27 February.