Net inflows to under-fire wealth manager St James’s Place slumped 64.5% in the first quarter of the year compared to last year, but funds under management climbed again.

It reported today net inflows of £710m for the three months to the end of March, a considerable fall from the £2bn reported in the first quarter of 2023.

But funds under management climbed from £154bn to £179bn, a rise of 6.4%, despite a tough period for the firm.

Mark FitzPatrick, chief executive, said the rise was “driven through a strong period of investment returns.”

Gross inflows fell by £200m – 4.8% - compared to the same quarter last year, which Mr FitzPatrick said was partially the result of fewer working days in March this year “ahead of the key pre-tax period.”

He said that high outflows were a trend being experienced across the industry “as clients continue to draw upon their savings to meet continued financial needs.”

In February the firm admitted it had set aside £426m to deal with client claims about historic ongoing advice after a surge in complaints in late 2023.

The firm, one of the biggest wealth advisers in the UK with around 5,000 partners, announced in October that it had concluded a "comprehensive review" of its client charging model and announced plans for a simpler and more comparable charging structure. It had taken action after widespread criticism of its charges.

Mr FitzPatrick updated on that by saying: “We are making good progress with our review of the business, and I look forward to sharing the outcomes alongside our half-year results in the summer.

“We also continue to move forward with our significant programmes of work to review historic client servicing records and to implement the new charging structure that we announced last October.”

Looking ahead he remained positive, saying: “While the outlook for the macroeconomic environment remains uncertain, our business is fundamentally in good shape as we continue to build our client base, grow adviser headcount, increase funds under management, and deliver for our clients. This means we are very well placed to capture the highly attractive long-term structural opportunity for the financial advice industry.”