St James’s Place: Stock price jumps after new money surge

St James’s Place brought in £4.3bn in new money throughout 2024, bringing its total assets under management to a record £190.2bn.

Britain’s largest wealth manager attracted £1.5bn of new money over the last quarter of the year, it said in a trading update , 70 per cent ahead of expectations.

The firm’s pension arm brought in the vast majority of this money (£1.2bn) despite making up only just over half of its business.

However, every arm of St James’s Place saw inflows, unlike the last quarter of 2023, when its investment and discretionary fund management arm both saw withdrawals.

The news caused the wealth manager’s stock price to surge more than six per cent to its highest since July 2023.

“The run up to the Autumn Budget created uncertainty for UK consumers and led to an increase in both gross inflows and outflows in the month of October,” said Mark Fitzpatrick, chief executive of St James’s Place.

“Client engagement levels were high throughout the quarter as our advisers provided support, reassurance and invaluable advice that helped clients navigate the uncertainty and safeguard their long-term financial futures.”

Despite the strong performance in the final quarter, the firm’s net inflows for the entire year fell from 2023, when it brought in £5.1bn.

St James’s Place’s holdings

St James’s Place also revealed it had upped its investment in North American equities, which now make up 39 per cent of its funds under management, up from 34 per cent at the end of 2023 – an increase of £17.5bn.

In contrast, its UK equity holdings stayed stable at £16bn, but the percentage of UK assets within its funds dipped slightly.

Alternative investments at St James’s Place were cut almost in half, falling from £10.5bn to £6.2bn.

“SJP has had a successful year. We have increased our client and adviser numbers, sustained net inflows and achieved record funds under management,” added Fitzpatrick.

“Looking forward, we see a growing need for trusted financial advice, and I am confident in our ability to capture this and deliver great outcomes for clients and all our stakeholders.”