Wealth manager St James's Place saw a year-on-year drop in gross and net inflows in May, the firm said today in a trading update.

Gross inflows for May were down by just over £250m year-on-year from £1.24bn to £0.98bn.

The firm said despite the impact of the Coronavirus pandemic, gross and net inflows in May were still “robust” given the current circumstances.

Client retention remained strong, the firm said, and Funds Under Management rose to £112.58m (from £105.83m  a year earlier earlier) thanks to a bounce back in the market.

The firm expects June gross inflows to be similar although the medium-term impact of the pandemic and economic volatility remains “uncertain.”

Andrew Croft, chief executive, said: "Despite the continuing challenges presented by Covid-19, gross flows in May were robust. Retention of existing client investments remains particularly strong, providing for a net inflow for the month of £0.67 billion.

“Funds under management benefitted from both these positive net inflows and the continuing recovery of world stock markets, to end the month at £112.6 billion.

“We remain encouraged by the inflows we are continuing to experience and expect June gross inflows to be similar to May, though the short to medium-term impact of COVID-19 and economic volatility on our flows remains uncertain."

Source: St James's Place