(Sharecast News) - St James's Place reported record funds under management of £212.4bn as of the end of September on Thursday, driven by robust inflows and double-digit investment returns, as the UK's largest wealth manager highlighted strong client engagement ahead of its new charging structure.

Gross inflows rose 30% year on year to £5.7bn in the third quarter, while net inflows nearly doubled to £1.76bn from £0.89bn a year earlier.

The FTSE 100 firm said its retention rate improved to 95.2% on an annualised basis, with year-to-date net inflows representing 3.9% of opening funds under management, up from 2.2% in 2024.

Chief executive Mark FitzPatrick said the results underscored the "power of our advice-led business model and the value clients place in the long-term, trusted relationships they have with our advisers".

"Gross inflows for the third quarter were £5.7bn, up 30% on the third quarter of 2024, reflecting both strong demand for financial advice and high levels of client engagement and activity ahead of the implementation of our new simple, comparable charging structure in late August," he added.

"High retention of funds under management has driven net inflows to £1.8bn, up 98%."

St James's Place said its investment proposition delivered strong returns on behalf of clients, equivalent to 12% of opening funds under management on an annualised basis.

Together with inflows, that raised total funds under management 12% year to date, taking the group past the £200bn milestone for the first time.

The company also completed a two-year overhaul of its charging structure in August, which FitzPatrick said had "unlocked our ability to innovate our investment proposition for the benefit of our clients".

Earlier this week, the company launched its Polaris Multi-Index range of funds, applying active asset allocation through index-tracking strategies to broaden its investment offering.

FitzPatrick cautioned that the macroeconomic outlook remained uncertain for UK consumers amid "soft economic growth, stubborn inflation and heightened speculation around the forthcoming Autumn Budget".

"With the third quarter having benefited from unseasonally high levels of client engagement and activity, and with the consumer environment uncertain, flows in the final quarter may therefore be less strong by comparison."

He said the group remained focused on its core strengths.

"As the clear home of trusted financial advice in the UK, we continue to focus on delivering for our growing client base and all our other stakeholders."

At 0917 BST, shares in St James's Place were down 2.59% at 1,318p.

Reporting by Josh White for Sharecast.com.

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