Wealth manager St James's Place said 2022 was its second-best year for new business, despite the tough economic backdrop and a drop in inflows.

For the full year it took in £9.8bn in net inflows, it said. However that was down from 2021 when net inflows were reported at £11.04bn.

Andrew Croft, chief executive, said: “Despite significant macroeconomic challenges, which deepened as the year progressed, 2022 marks the second-best year for new business flows in St James’s Place’s history.

“This strong outcome is testament to the hard work of everyone in our community and to the enduring resilience of our business, no matter the environment.”

He said the company had a pleasing uptick in the last three months. “I am pleased to report that our advisers attracted £3.87bn of new client investments during the final quarter.”

However the wider economic challenges for clients' had an affect and the firm’s assets under management for 2022 fell 4% to £148.4bn, from £153.99bn at the end of 2021.

Mr Croft said: “Retention of client investments remains very high, reflecting not only their long-term nature, but also the steadying hand of our advisers in difficult markets.”

The number of qualified advisers at the firm climbed by 137 over the year, rising from 4,556 to 4,693.

Mr Croft said 2023 has started in much the same way that 2022 ended, “but it is encouraging to see more recent positive indicators that UK inflation may have peaked, together with some evidence that currency and investment markets are more stable.”

He added that a sustained recovery in macroeconomic indicators would naturally be conducive towards improving consumer sentiment, activity levels and of course funds under management, as 2023 unfolds.

Mr Croft continued: “Longer term, the demand for trusted, face-to-face advice is only getting stronger, so with a growing partnership and a business in great shape, we continue to be well positioned to capitalise on our market opportunity and deliver against our 2025 ambitions.”