St James's Place reported a £1bn decrease in net inflows for the first half of 2026, with the figure dropping to £2.7bn from £3.8bn. The company attributed this decline to market uncertainty and upcoming changes to retirement and financial planning regulations.
A significant factor cited is the impending inclusion of pensions within the scope of inheritance tax from April 2027. This change will introduce a 40 per cent levy, leading some savers to withdraw money from their pension pots before it takes effect.
The FTSE 100 group's profit before tax also saw a reduction, falling to £278.4m from £307m in the previous year, as the company implements an overhaul of its fee structure. This overhaul includes separating charges into components and removing early withdrawal charges on pensions and bonds. St James's Place also announced an interim ordinary dividend of 6p per share and a new share buyback programme totalling £128.1m.
Despite the fall in inflows and profit, the company saw an increase in customer retention, with adviser numbers rising to 4,951 from 4,934, and client numbers growing to 1,064,000 from 1,037,000. Funds under management (FUM) reached a record £240.8bn, up from £220bn at the end of 2025, supported by a 16.4 per cent annualised investment return.