Wealth manager St James’s Place was hit by lower-than-expected inflows last year as economic uncertainty deterred investors.
The FTSE 100 investment company posted £5.1bn in net inflows during the 12 months to December 31, nearly half of the £9.8bn recorded a year earlier.
Thursday’s trading update caused the company’s share price to plunge to its lowest level in a decade.
St James’s Place (SJP), which is the largest wealth manager in Britain, said that clients’ confidence in long-term investments was dented by economic volatility and more attractive returns on cash deposits.
However, total funds under management grew to a record £168.2bn last year, up from £148.4m.
The slowdown in performance came as newly appointed chief executive Mark FitzPatrick kicked off an overhaul of the business.
It is understood that the review, which will be launched over the next few months, will look to increase efficiency and boost profitability in the lead-up to 2030.
St James’s Place sets out a new strategy every five years, although it is not yet clear if the latest shake-up will lead to job cuts.
Shares in SJP, which looks after more than 900,000 clients, fell by 4pc on Thursday.
It’s the latest blow for St James’s Place, which has seen its valuations battered over the past year amid rising regulatory pressure and weaker demand among investors.
Shares have fallen nearly 47pc in the past 12 months, wiping billions off the company’s value.
Mr FitzPatrick said: “As we build on the strong foundations we have established over three decades, we continue to see a huge opportunity to support more clients who need help and advice.”
The operational review comes months after Mr FitzPatrick took the helm as chief executive in October, replacing Andrew Croft.
The company announced in October that it will radically overhaul its fee structure in response to pressure from the Financial Conduct Authority.
The major revamp includes scrapping its controversial exit fees charged to customers who withdraw from their bond and pension investments early.
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2024-01-25 20:26:00Z
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