St James's Place saw its funds under management drop 7.6% over H1 despite recording £5.5bn of net inflows, as the reversal in global investment markets dragged down investment performance.
According to its half year results, the firm saw its FUM reduced by £11.7bn in six months, closing at £142.3bn, down from £154bn in December 2021.
Over the period, the wealth manager saw net investment returns fall by £17.3bn, with UK equities suffering the most as it lost £5.5bn, while fixed income dropped £4.4bn. Alternatives was the only asset class that remained unchanged at £11.6bn of total FUM.
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The firm still managed to bring in £9.1bn of new client investments, £5.5bn of which were net inflows, in line with the same period last year. The new capital was equivalent to 7.1% of opening FUM on an annualised basis.
Profit before tax moved from £482.6m for the six months to 30 June 2021 to a loss of £298.4m for the same period this year.
"Financial advice is needed now more than ever given the challenges facing individuals, both in the short- and long-term," said SJP CEO Andrew Croft.
"Given current market conditions, we now expect full year gross and net flows of around £18bn and £11bn respectively, which would make 2022 our second highest ever year for flows and put the business even further ahead against our 2025 business plan objectives."
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The firm's 2025 strategy aims to achieve long-term compound new business growth of 10% per annum and consistent retention above 95% to reach £200bn of FUM by 2025, and CFO Craig Gentle said that "good progress is being made" towards these targets.
