St James's Place reports lower Q3 net inflows amid uncertainty ahead of UK budget

St James's Place Sees Q3 Net Inflows Drop as Investors Await UK Budget

St. James's Place Q3 Performance and Market Context

Oct 29 (Reuters) - British wealth manager St. James's Place reported a fall in third-quarter net inflows on Thursday as investors remained cautious in the lead-up to the UK budget and amid unpredictable markets, sending shares down as much as 5.7%.

Key Financial Highlights

Here are some details:

Net Inflows and Funds Under Management

• The group reported net inflows of £570 million ($760.04 million) for the quarter ending September 30, down from £1.76 billion a year ago

• Funds under management as at September 30 were £242.4 billion, compared to £212.4 billion as of September 30 last year

Investor Sentiment and Market Factors

• Investors have pulled back from riskier assets as the Iran war and a global bond selloff clouded sentiment, reducing trading activity

• The company added that the lower net inflows also reflected a strong comparative period last year, which benefited from high levels of activity linked to its then-new charging structure

Analyst Insights and Future Outlook

Tax and Regulatory Changes

• The inheritance tax levy on unused pension assets set to come into effect from April next year will be a headwind, JPM analysts said

Asset Retention Challenges

• Analysts also noted that retaining assets on the platform may prove challenging as more advisers approach retirement

Additional Information

($1 = 0.7500 pounds)

(Reporting by Simone Lobo in Bengaluru; Editing by Jochelle Mendonca)