Net inflows have dropped 31% year-on year to £2bn (Q1 2022: £2.91bn) for wealth manager St James’s Place in the first quarter of 2023, according to a trading update issued this morning.

Gross inflows dropped 11.8% year-on-year to £4.17bn (Q1 2022: £4.73bn) for the quarter.

However, funds under management at the close of the quarter rose year on year to £153.62bn (Q1 2022: £151.25bn).

The funds under management retention rate dropped slightly to 95.9% (Q1 2022: 96.6%).

Andrew Croft, CEO at St James’s Place, said despite the drop in net inflows it had been a "good quarter" and he expected net flows and funds under management to increase as the year goes on.

He said: “I am pleased to announce another good quarter for St. James's Place, with our advisers attracting £4.17 billion of new client investments to the business. While lower versus a very strong first quarter outturn in 2022, these gross inflows represent growth against the final quarter of last year. Retention has remained strong, supporting a further £2.00 billion of net inflows and contributing to funds under management closing the period at £153.62 billion.

“This outcome for both gross and net flows is testament to the scale of ongoing demand for trusted face-to-face advice, the long-term nature of our client proposition and the strength of adviser-client relationships in all environments.

“We have begun 2023 much as we expected, so if macroeconomic indicators and consumer sentiment show further signs of recovery, we continue to anticipate a more supportive environment for new business as 2023 unfolds.”

Last month it was revealed that Mr Croft is to receive a basic pay rise increase of nearly £30,000 per annum after his pay package fell last year when the firm suffered a drop in Funds Under Management.

His base pay rose last month from £590,947 to £620,494, up 5%, according to the wealth manager's Annual Report and Accounts.

Mr Croft’s total remuneration package fell slightly last year from £3.141m the previous year to £3.115m, mainly due to bonuses being cut.