Wealth manager St James’s Place saw net inflows nearly halve in 2023 to £5.12bn but funds under management rose sharply as a market recovery got under way.

In a trading update issued today, the company said that net inflows in 2023 fell to £5.12bn (2022: £9.78bn).

Gross inflows over the same period were down from £17.03bn to £15.39bn.

The company blamed a “difficult market backdrop” for the figures and said new business had remained robust at £3.7bn and Funds Under Management had grown to a record £168.2bn (2022: £148.37bn) thanks to recovering markets and better investment performance.

The number of qualified SJP advisers rose from 4,693 to 4,834 - with recent FCA data suggesting SJP total adviser numbers have topped 5,000 for the first time.

New CEO Mark FitzPatrick said: “I am pleased to report that SJP’s new business performance has remained robust during the final quarter, with our advisers attracting £3.7 billion of new client investments to the business.

“This rounds out a solid year in which we achieved £15.4 billion of total gross inflows and £5.1 billion of net inflows despite a difficult industry backdrop. Annual retention rates remain very strong at more than 95%.

“While the need for trusted face-to-face financial advice remains as strong as ever, client capacity and confidence to commit to long-term investment have been impacted by the economic environment and short-term alternatives in the form of cash deposit and savings rates."

“As we build on the strong foundations we have established over three decades, we continue to see a huge opportunity to support more clients who need help and advice. I want SJP to capture this long-term opportunity, so as we start planning our vision for 2030 I am reviewing all elements of our business to ensure we are fully fit for the future and best placed to keep delivering for all our stakeholders.”

Figures for SJP’s subsidiary Rowan Dartington Group showed FUM of £3.43bn at 31 December 2023, gross inflows of £0.07 billion for the quarter and outflows of £0.04 billion.