Assets under management at wealth manager St James’s Place dipped by £2bn to £188.6bn in the first quarter of 2025, despite a 29% rise in gross inflows for the quarter.

The wealth manager had reported a record £190.2bn in assets under management at the close of 2024, and attributed the dip in assets to a decline in global markets during the first quarter of this year.

Despite the economic headwinds, SJP saw a considerable rise to both gross and net inflows.

Net inflows more than doubled to £1.69bn for the quarter (Q1 2024: £0.71bn).

Gross inflows rose 29% to £5.14bn in the first quarter (£3.97bn), which SJP attributed to the “trusted relationships” its advisers had built with clients.

The wealth manager’s retention rate held steady at 95% (of funds under management).

Mark FitzPatrick, CEO of St James’s Place, said that while the external environment had been uncertain, engagement levels from existing and new clients had been high.

He said: “We are pleased to have built momentum in new business in recent quarters, and we have continued to see good levels of client engagement and activity so far in April.

“Looking forward, macroeconomic uncertainty and market volatility create a challenging environment for savers and investors, but one which underlines the value that trusted financial advice delivers to clients. Our advisers continue to help clients navigate these conditions and stay on track to achieve their long-term financial goals and aspirations.

“We have a long history of net inflows during all phases of the economic cycle, and the quality of the partnership and the strength of our advice-led business model positions us well for the future.”

The wealth manager, which claims to be the UK's largest, has been under scrutiny following high levels of customer complaints, with the Financial Ombudsman receiving 485 new complaints about St James’s Place in the first half of 2024 alone.

The scrutiny saw SJP refresh its strategy in 2024 and introduce a simpler and more comparable charging structure. The wealth manager is also looking to reduce costs after struggling with profitability with a loss of £4.5m in 2023 when profits were hit by provisions for potential customer redress.

In the latest quarterly update SJP said it was continuing to work through its historic client servicing records and making good progress.

It said its cost and efficiency programme, which aims to reduce costs by £100m by 2027, is “continuing to move forward”  and that it is making substantial progress.