The group, which provides a range of investment services to affluent savers, including mutual funds, pensions and tax planning, said fourth-quarter net inflows were up 26 percent at 2.1 billion pounds.

Net investment gains during the quarter were 1.9 billion pounds, it added. This was helped by strong performances across a number of stock markets during the period, with the FTSE 100 <0#.FTSE> up more than 3 percent.

The positive end to the year meant that total funds under management increased by almost 17 billion pounds over the 12 months, helped by inflows to its pension products of almost 8 billion pounds.

"There are fewer defined benefit pension arrangements available for people, so ... first and foremost we talk to people about putting money into their pension and managing their pension," Chief Executive David Bellamy said.

In addition, tax-free Individual Savings Accounts (ISAs), unit trusts and investment bonds had also shown a strong finish to the year, he added.

"Alongside these fund flows, we've continued to expand our capacity to attract new clients and build upon our existing client relationships, both in the UK and in Asia, and this bodes well for our future growth," Bellamy said in a statement.

The firm was helped by strong client retention of 95 percent, and said the number of qualified advisors who provide its face-to-face financial advice rose 10 percent on the year to 3,415.

"Advisor growth is a leading indicator of future growth and hence underpins the growth outlook for 2017 and 2018, in our view," analysts at JPMorgan said in a note to clients, reiterating their 'overweight' rating on the stock.

Shares in St James's Place were up 1 percent at 0803 GMT, in a flat FTSE 100 <.FTSE>.

(Reporting by Simon Jessop; Editing by Greg Mahlich)

By Simon Jessop