St James's Place PLC (LSE:STJ) shares dropped 5.5% to 1,183p after results came in slightly below expectations for the first quarter, the first full period under a new charging structure.
Funds under management (FUM) at the end of March fell to £217 billion from £220 billion at the end of last year, though up from £188.6 billion a year ago. The market had forecast around £219 billion.
Net inflows of £1.53 billion slightly bested the consensus of £1.49 billion but were more than offset by downward market movements of £4.6 billion in the quarter.
Chief executive Mark FitzPatrick called it a "good first quarter" against a backdrop of heightened geopolitical uncertainty and market volatility in the run‑up to the tax year-end, with FUM retention of 95.3%.
"The decline in global markets during the quarter impacted our FUM," he said.
"While macroeconomic uncertainty continues, periods like this underscore the enduring value of high-quality financial advice.
"Our advisers provide reassurance and help clients navigate market conditions, ensuring they remain focused on their long‑term financial goals."
Analyst Abid Hussain at Panmure Liberum says client retention remained strong and there seemed to be no signs of outflow accelerations despite the fee structure change.
"The business is simplifying its model and charging structure, with this the first wholly clean quarter under the new fee changes, so it is encouraging to see retention levels holding up well and we continue to believe that the advice-led business should create stickier flows."