St James's Place saw a sharp decline in its share price during early morning trading on Wednesday, as heightened geopolitical uncertainty stemming from the Iran war damaged inflows and funds under management. The FTSE 100 wealth manager's shares tumbled 5.2 per cent to 1,187p, with shares down 14.8 per cent year-to-date.
First Quarter Update Reveals Declines
The group reported a 9.4 per cent drop in net inflows in its first quarter update, falling to £1.5bn from £1.6bn in the prior year. The ongoing Middle East conflict also impacted funds under management (FUM), which closed the period at £216.9bn, down from record highs of £220bn at the end of 2025.
Declines Across All Business Arms
Declines were recorded across all business segments over the course of the quarter. The investment arm fell from £44.1bn to £43.3bn, while the pension business saw a slight decline from £119.9bn to £118.3bn. Discretionary fund management also decreased marginally.
However, closing FUM was higher than the same period last year, jumping 15 per cent from £188.5bn. The funds under management retention rate remained robust at 95.3 per cent, a three percentage point increase. Gross inflows rose from £5.1bn to £5.2bn.
Regional Performance Shifts
Regional FUM also shifted over the quarter. North American equities accounted for 36 per cent of the total, down from 38 per cent, but total FUM in the region increased from £71.3bn to £78.6bn year-on-year. European equities continued to represent 14 per cent of the total, with FUM rising from £25.7bn to £30.8bn. The UK also maintained its nine per cent share.
Mark FitzPatrick, chief executive officer of St James's Place, noted that despite the damage caused by ongoing volatility, the group was focused on capturing a significant long-term market opportunity. Analysts remained bullish, with Panmure Liberum observing that simplifying the model and charging structure allowed retention levels to hold, and that its advice-led business should create stickier flows.
