Wealth manager and Financial Planner St James's Place has reported a near £5bn drop in Funds Under Management and a sharp dip in inflows in its latest quarterly trading figures. 

Against a backdrop of weak markets the firm, like many wealth managers recently, has been hit by uncertainty but says it remains confident.

Funds under management in Q3 fell by £4.92bn from £148.06bn in Q3 2021 to £143.14bn in Q3 this year.

Gross inflows in Q3 fell to £4.05bn (£4.32bn in Q3 2021) and net inflows dropped to £2.19bn (£2.59bn in Q3 2021). The figures cover the three months ended 30 September.

The firm has blamed a “challenging” environment for the falls.

SJP CEO Andrew Croft said that given the difficult condition the quarter was a "strong" one and the firm would now renew the efforts of its advisers to remain “close” to clients.

He said: "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. This has underpinned gross inflows of £4.05 billion, only modestly lower versus a record comparative period in 2021. 

“Retention has remained very strong, supporting net inflows of £2.19 billion and contributing to funds under management closing the period at £143.14 billion.

“Although we face an uncertain geopolitical and macroeconomic backdrop, the partnership remains critically placed to help clients plan, save and invest for the future, building confidence in their long-term finances. 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."

The firm's Rowan Dartington Financial Planning business, acquired in 2015, had FUM of £3.18 billion at 30 September 2022, gross inflows of £0.08 billion for the quarter and outflows of £0.03 billion. In line with SJP the figures were down on the previous quarter. Established in 1990, Rowan Dartington has offices across England and Scotland and client assets of over £2bn.