St James's Place New CEO Pledges Comprehensive Business Review

Leadership Change and Business Evaluation at St James's Place

The newly appointed CEO of St James's Place PLC, taking the reins in December, has committed to an extensive review of the company's operations. The Cirencester-based wealth management firm has experienced an increase in assets under management in 2023, despite facing slower growth in net new money coming into the firm.

Amid scrutiny from UK regulators concerning its fee structure, the firm has vowed to abolish early withdrawal charges for clients in the second half of 2025, responding to criticism over its policies.

Growth Amidst Challenges

St James's Place has reported an uplift in assets, totalling GBP 168.20 billion by the end of December, climbing from GBP 148.37 billion a year prior. However, the pace of new funds being invested has slowed, with gross inflows dropping to GBP 15.39 billion in 2023 from GBP 17.03 billion in 2022 and net inflows dipping to GBP 5.12 billion from GBP 9.78 billion.

The company's key performance indicator, which measures net inflow against opening funds under management, saw a decrease to 3.5% in 2023 from 6.4% in the previous year. Additionally, there was a slight reduction in the retention rate of clients, from 96.5% to 95.3%.

In just the fourth quarter, there was an increase in funds under management from GBP 158.57 billion at the end of September, although net inflows lessened from GBP 2.05 billion a year earlier to GBP 770 million, despite gross inflows only slightly declining from GBP 3.87 billion to GBP 3.67 billion.

Positive Investment Returns and Future Outlook

On the brighter side, the firm enjoyed a healthy net investment return of GBP 8.86 billion in the last quarter, a significant improvement over the GBP 3.18 billion seen in the same period the previous year.

Addressing the challenges and the road ahead, CEO Mark FitzPatrick stated, "While the necessity for dependable face-to-face financial guidance is unwavering, the current economic landscape, coupled with more enticing short-term savings options, has somewhat dampened clients' enthusiasm for committing to long-term investments."

Looking forward, FitzPatrick, with his background as former CFO of Prudential PLC, is poised to sharpen the company's focus and adapt to future demands, all while maintaining a commitment to stakeholders. Despite this strategic optimism, shares in St James's Place dipped by 8.3% early Thursday in London, diverging from a broadly stable FTSE 100 index.

review, assets, regulation