Cirencester-based wealth management company St James's Place has seen inflows shrink but assets rise.

In a trading update for the three months to March 31, the group reported a jump in funds under management to £179 billion (Q1 2023 £153.6bn).

However, net inflows have fallen in the past year from £2 billion to £710 million.

CEO Mark FitzPatrick said: "I am pleased to report a good first quarter for the year, resulting in client funds under management (FUM) increasing to £179 billion. 

"This has primarily been driven through a strong period of investment returns, as our investment proposition continues to deliver for clients. FUM has also benefited from £0.7 billion of net inflows, further extending our track record of generating net inflows every quarter."

Mr Fitzpatrick said gross inflows of £4.0 billion were modestly lower year-on-year, in part due to the fewer number of working days in March this year ahead of the key tax year end period.

"For the year to April 5, gross inflows are broadly unchanged on the equivalent period in 2023, reflecting an increased level of client activity, albeit with a lower average investment size. Meanwhile, outflows remain at an elevated level, continuing a trend we have seen across our industry, as clients continue to draw upon their savings to meet continued financial needs."

He added: "We are making good progress with our review of the business, and I look forward to sharing the outcomes alongside our half-year results in the summer. We also continue to move forward with our significant programmes of work to review historic client servicing records and to implement the new charging structure that we announced last October.

"Both programmes are proceeding in line with our plans and expectations, and the financial guidance associated with each of these remains unchanged.

"While the outlook for the macroeconomic environment remains uncertain, our business is fundamentally in good shape as we continue to build our client base, grow adviser headcount, increase funds under management, and deliver for our clients. This means we are very well placed to capture the highly attractive long-term structural opportunity for the financial advice industry."