Wealth manager St James's Place (SJP) announced record funds under management (FUM) of £174.2bn for the full year 2024, a 12% increase from £155.5bn in 2023. The growth was underpinned by net inflows of £8.1bn and positive market movements of £10.6bn.
Strong Net Inflows and Client Retention
The company reported gross inflows of £18.4bn, with net inflows representing a 4.7% growth rate. Client retention remained high at 95.3%, reflecting sustained confidence in SJP's advice-led model. Chief Executive Mark FitzPatrick said, "These results demonstrate the resilience of our business and the value clients place on our trusted advice."
Regulatory Scrutiny and Provisioning
SJP faced increased regulatory scrutiny over its fee structure and historic advice charges. The firm set aside a provision of £426m for potential redress to clients who may have received unsuitable advice, up from £235m in 2023. FitzPatrick noted, "We are committed to putting things right where we have fallen short."
Financial Performance and Dividend
Underlying profit before tax rose 8% to £1.12bn, driven by higher fee income from the growing FUM base. The board recommended a final dividend of 23.8p per share, bringing the full-year dividend to 35.7p, a 5% increase. However, the shares fell 3% on the day as investors weighed the cost of regulatory provisions.
Outlook and Strategic Initiatives
Looking ahead, SJP expects to maintain its net inflow momentum, targeting mid-single-digit growth. The firm is investing in digital tools to enhance adviser productivity and client experience. FitzPatrick added, "Our strategy remains focused on delivering long-term value for clients and shareholders." Analysts at RBC Capital Markets noted that the results were broadly in line with expectations, but the elevated provision could weigh on near-term sentiment.
