Street Calls of the Week
Investing.com -- St. James’s Place PLC (LON:SJP) reported stronger-than-expected third quarter results on Thursday, with funds under management surpassing £200 billion for the first time, but shares fell 3.03% after the company cautioned about potentially weaker flows in the fourth quarter.
The UK wealth management firm reported gross inflows of £5.7 billion for the third quarter, exceeding analyst expectations of £5 billion and representing a 30% increase from the same period last year. Net inflows reached £1.76 billion, also ahead of the £1.6 billion consensus estimate and nearly double the £0.89 billion recorded in Q3 2024.
Total funds under management reached a record £212.36 billion as of September 30, up 12% year-to-date and approximately £2 billion above analyst expectations. The company’s retention rate improved to 95.2% from 94.6% in the prior year, 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 results, St. James’s Place warned that fourth-quarter flows might be less robust, noting that the third quarter had benefited from "unseasonally high levels of client engagement and activity" ahead of the implementation of its new charging structure in late August, while also citing an uncertain consumer environment.
The company also highlighted strong investment performance, with year-to-date returns representing 12% of opening funds under management on an annualized basis. St. James’s Place recently launched its Polaris Multi-Index range of funds, implementing its active asset allocation expertise through index-tracking funds.