St. James's Place reported mixed flow dynamics, with fourth-quarter net inflows falling to £0.6 billion - a decline of 63% compared with the same quarter a year earlier. Management attributed the weaker quarterly performance to pricing changes made in August that pulled some client activity forward, and to concerns around pension taxation following announcements in the November budget.
Despite the quarterly setback, the firm delivered stronger annual results. For the full year 2025, net flows increased 42% to £6.2 billion. Investment performance also supported growth, lifting funds under management (FUM) to £220 billion, 16% higher than the prior year and 1% above consensus expectations.
Flow composition showed notable variation across product lines. Pension FUM recorded the weakest quarterly net flows at £0.2 billion, down from £1.2 billion in the prior-year quarter. Investment Bonds were effectively neutral in the quarter, compared with typical quarterly inflows of around £0.2 billion. Meanwhile, Unit Trust/ISA and discretionary fund management (DFM) net flows held steady at approximately £0.3 billion.
The quarter also saw elevated outflows in certain areas. Although inflows to Investment Bonds and Pension products were higher than expected, surrender activity rose, particularly in the Pension category. Regular income withdrawals from pensions increased to an annualized rate of 6.1%, up one percentage point year-on-year and materially above the 3.4% annualized rate recorded in Q4 2023. Both Investment Bond and Pension surrenders were elevated during the period.
Market conditions provided a tailwind to results in the period. The company reported annualized investment returns of 13% in the quarter, which contributed to the rise in FUM.
Looking forward, St. James's Place said outflow patterns had returned to more normal levels in late 2025 and into early 2026. The firm expressed confidence as it entered 2026, noting that both client flows and engagement had stabilized following a period of heightened client interaction related to the pricing change implemented in the third quarter of 2025.
Summary
Fourth-quarter net flows were £0.6 billion, down 63% year-over-year; full-year 2025 net flows rose 42% to £6.2 billion. FUM reached £220 billion, up 16% on the year and 1% above consensus. Pension flows weakened sharply, Investment Bonds were neutral for the quarter, and Unit Trust/ISA and DFM flows were steady. Pension withdrawals and surrenders rose, while quarterly investment returns were annualized at 13%.