Finance
St James's Place warns of softer flows with UK budget on horizon
Published by Global Banking and Finance Review
Posted on October 23, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 23, 2025
2 min readLast updated: January 21, 2026
St James's Place forecasts weaker Q4 flows due to economic uncertainty and the UK budget. Despite Q3 success, shares fell 4% amid concerns.
(Reuters) -St James's Place on Thursday forecast weaker flows for the fourth quarter, citing an uncertain consumer environment and soft economic growth, sticky inflation and concerns around the looming autumn budget.
The company's shares fell 4% to 1,299 pence in early trade, making it the worst performer on the FTSE 100.
The British fund manager and its peers gained ground in recent months as investors shifted toward the London market, spooked by volatile U.S. trade policies.
With uncertainties surrounding the upcoming UK budget, due in November, the financial health of wealth managers might mirror last year if clients start pulling out cash again.
Jefferies analysts expect consensus to increase marginally on better flows and investment performance, but said the budget will likely introduce caution to share price moves.
The warning comes even as the fund manager nearly doubled its net inflows in the third quarter and pushed managed assets past the 200-billion-pound ($268.42 billion) mark for the first time. The performance was supported by growing investor preference for UK assets and strong client activity after the fund manager's revised simple fee structure.
The Gloucestershire-based company posted net inflows of 1.76 billion pounds, up from 890 million pounds last year.
($1 = 0.7451 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Harikrishnan Nair and Sherry Jacob-Phillips)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured annually and can impact economic growth.
Net inflows refer to the total amount of money that is invested in a fund or financial product, minus the amount withdrawn. Positive net inflows indicate growing investor confidence.
A budget is a financial plan that outlines expected revenues and expenditures over a specific period. It helps organizations and individuals manage their finances effectively.
Economic growth is the increase in the production of goods and services in an economy over a period, typically measured as the percentage increase in real GDP.
A fund manager is a professional responsible for making investment decisions and managing a mutual fund or investment portfolio on behalf of clients.
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