(Alliance News) - St James's Place PLC on Thursday posted a fall in funds under management in the third quarter to September 30 amid a challenging external environment as European equities' funds overtook UK equities.
The blue-chip wealth manager reported GBP143.14 billion in funds under management as of September 30, down 3.3% from GBP148.06 billion a year before but up by 0.6% from GBP142.26 billion on June 30.
Net inflows during the third quarter contracted by 15% to GBP2.19 billion from GBP2.59 billion a year before. Gross inflows fell 6.3% to GBP4.05 billion from GBP4.32 billion.
By asset class, St James's Place North American Equities fund - which makes up 33% of total funds - increased 13% to GBP47.3 billion from GBP41.8 billion at the end of September last year.
The wealth manager's Fixed Interest fund - which makes up 15% of total funds - decreased by 9.6% to GBP21.7 billion from GBP24.0 billion. Asia & Pacific Equities - 12% of funds - fell by 17% to GBP17.8 billion from GBP21.4 billion.
European Equities - 12% of funds - fell 2.3% to GBP17.1 billion from GBP17.5 billion, but overtook UK Equities. UK Equities - 11% of total funds - plummeted 22% to GBP15.4 billion from GBP19.8 billion.
Alternative Investments - 9% of funds - rose 7.8% to GBP12.4 billion from GBP11.5 billion.
The firm's net investment return decreased total funds by GBP1.31 billion in the third quarter. A year ago, they added GBP1.70 billion to total funds.
"In a challenging external environment, I am pleased to report another strong quarter for St. James's Place. At times like these, the focus of our advisers is to remain close to their clients and provide them with timely, personal, and trusted advice that helps them consider and manage near-term pressures while maintaining a long-term mindset," said Chief Executive Officer Andrew Croft.
He added: "Our business has proven its strength over time and this, together with our resilient financial model, means that we expect 2022 to be another year of good progress towards the 2025 goals we have set, and we are comfortable with consensus expectations for new business and our financial performance for the year."
St James's shares were 0.3% higher at 997.00 pence each in London on Thursday afternoon.
By Tom Budszus; tombudszus@alliancenews.com
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St James's Place (STJ)