St James’s Place (SJP) has been relegated from the FTSE 100 index following a fall in shares and net inflows.
The wealth manager was relegated alongside Ocado in a quarterly reshuffle. The move reduces the number of asset managers in the index to one.
SJP and Ocado will be replaced by housebuilder Vistry Group and Darktrace.
The changes will come into effect in time for trading on 24 June.
The FTSE 100 index includes the 100 largest London-listed businesses by market capitalisation.
St James’s Place, founded in 1991, is a leading UK wealth management organisation. It oversees over £79bn funds under management for its large client base. The wealth manager was listed on the London Stock Exchange in 1997.
However, the firm has struggled this year with a fall in net inflows and share prices. In a trading update for the three months ended March 31, SJP reported net inflows were £710m compared with £2bn in the same period last year.
However, this was only partially down from the £770m of net inflows recorded in the final quarter of 2023.
The company reported gross inflows of £3.97bn, down from £4.17bn in Q1 2023 but an increase from the £3.67bn recorded in Q4 2023.
SJP’s share price fell 57% over the past 12 months amid changes to its charging structure and review of the business.
Last November, the firm scrapped its controversial exit fees following intervention by the Financial Conduct Authority as part of its Consumer Duty rule enforcement.
The demotion of SJP from the flagship index will further hit its share prices and investor confidence. However, the firm now trades on the FTSE 250 Index.
SJP has been contacted for comment.
One wonders if this might be the beginning of the end of the faltering SJP dynasty.
Although we may wish it Julian, I think they will survive, allbeit in a more modest strata.
Yes, I think you’re right. SJP isn’t on the verge of going under, but neither will it be able to carry on as it has been, i.e. completely exempt from compliance with the RDR. That’ll mean simpler and easier to compare charging structures, no early withdrawal charges and, of course, even closer scrutiny of the decidedly creaky performance of its funds.
Anyway, according to this report there will only be one asset manager in the FTSE 100, which I think is good thing. Being replaced by what I regard as ‘solid’ companies with clearly defind assets of their own (not other peoples’ money). And a decent moat.
They are know expeiencing what it is like for the rest of us, trying to run a business in this regulatory enviroment
They do, at least, provide some training for ‘new’ and ‘younger’ advisers?