Wealth manager St James’s Place has reported a fall of nearly £12bn in Funds Under Management for the six months ended 30 June.

The company said “significant reversals” in global markets hit FUM which fell from by £11.7bn from £154bn to £142.3bn.

Gross inflows were also down at £9.1 billion (2021: £9.2 billion) but net inflows were stable at £5.5 billion (2021: £5.5 billion).

Retention of client funds remained strong at 96.5% and the firm increased its number of advisers to 4,626, up 70 in the year to-date so far. There is a further pipeline of 358 individuals coming through the SJP Academy.

The EEV operating profit rose to £914.2 million (2021: £844.8 million) and IFRS profit after tax increased substantially to £205.6 million (2021: £120.9 million).

An interim dividend was declared of 15.59 pence per share (2021: 11.55 pence per share).

SJP CEO Andrew Croft said the first half of 2022 presented “fresh challenges” for the group but he was encouraged by the strength of business performance.

He said: " After a year that saw global economies and investment markets rebound across the world, the first half of 2022 has presented fresh challenges for individuals looking to save and invest for the future. 

“Sharply rising inflation, geo-political tensions, domestic political uncertainty and a more uncertain economic outlook, all present risks for those seeking confidence in their future. This is an environment in which our advisers can add real value for their clients, helping them to stay on track. I am therefore very encouraged, but not at all surprised, by the strength of our business performance during the period, which is a testament to the qualities of our business model and the hard work of our entire SJP community.”

He said during the first half the company attracted £9.1 billion of new client investments. The firm has stressed the benefits of long term investing to clients.

He added: “While our new business performance has been strong, significant reversals in global investment markets have impacted our funds under management (FUM), which closed the half at £142.3 billion.” 

Turning to the fall in FUM he said: “Although FUM has fallen since the start of the year, our income has been supported by the maturing of funds in gestation during the first half. This, together with continued discipline around how we manage our resources, has supported a strong financial result for the period with an underlying cash result of £198.8 million, up 5% period-on-period.”

He said SJP entered the second half with a “growing partnership ideally placed to continue helping clients in these uncertain times.”

He said financial advice was needed now “more than ever given the challenges facing individuals, both in the short- and long-term.”

The company expects full year gross and net flows of around £18 billion and £11 billion respectively, which would make 2022 its second highest ever year for flows and put the business even ahead of its 2025 business plan objectives.