TIDMSTJ
RNS Number : 4340L
St. James's Place PLC
28 April 2015
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ST. JAMES'S PLACE plc
27 St. James's Place, London SW1A 1NR
Telephone 020 7493 8111 Facsimile 020 7493 2382
PRESS RELEASE
28 April 2015
ST. JAMES'S PLACE WEALTH MANAGEMENT
STRONG FIRST QUARTER TAKES
FUNDS UNDER MANAGEMENT TO GBP55.8 BILLION
St. James's Place plc ("SJP"), the wealth management group,
today issues its interim management statement for the three months
ended 31 March 2015.
Highlights:
-- New business on an APE basis of GBP232.2 million (2014:
GBP205.4 million) - up 13%
-- Total new single investments of GBP2.0 billion (2014: GBP1.8
billion ) - up 11%
-- Continued strong retention of clientfunds - 96%
-- Net inflow of funds under management of GBP1.30 billion
(2014: GBP1.19 billion) - up 9%
-- Funds under management of GBP55.8 billion (2014: GBP45.8
billion) - up 22% over 12 months and 7% since the beginning of the
year
David Bellamy, Chief Executive, commented:
"I am pleased to report a strong first quarter with new
investments of GBP2 billion and continuing high retention of our
clients' existing funds, taking our funds under management to
GBP55.8 billion, up 7% since the beginning of the year.
During the period we received feedback from 47,000 clients who
responded to our annual Wealth Account Client Survey. The majority
told us that that their highest priority is ensuring they have
enough to live on in retirement. They also want to be able to enjoy
retirement without worrying about financial matters and have
sufficient funds to pay for their long term care, should they need
it in the future. This survey reinforces our experience that people
keep their money invested as long as possible, contributing to our
strong retention of funds under management. It further suggests
that individuals understand the need to save and are unlikely to
disturb their retirement plans following the introduction of the
new rules.
People face an increasingly complex range of decisions when
considering how to manage their wealth. Irrespective of any changes
that may result from the impending General Election, our Partners
will continue to play an important role in helping them to fully
understand their options, now and in the future, to achieve their
financial objectives.
Consequently, there has rarely been a greater need for advice
which is why I remain confident that if we continue to focus on
achieving the best possible outcomes for our clients, through the
provision of sound personal advice, a reliable ongoing service and
our distinctive approach to the management of their wealth, we will
continue to grow our business in line with our objectives, in 2015
and beyond."
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The details of the announcement are attached.
Enquiries:
David Bellamy, Chief Executive Tel: 020 7514 1963
Officer
Andrew Croft, Chief Financial Tel: 020 7514 1963
Officer
Tony Dunk, Investor Relations Tel: 020 7514 1963
Director
Bell Pottinger Tel: 020 3772 2566
John Sunnocks
Ben Woodford Email: Bwoodford@BellPottinger.com
Contents
1. Commentary and outlook
2. Funds under management
3. SJP new business
4. Third party new business
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1. Commentary and Outlook
The first quarter of 2015 has seen growth in a number of global
stock markets, which would suggest increasing investor confidence
in the world's developed economies.
This has contributed to strong levels of new business, with an
11% increase in new single investments to GBP2.0 billion and a
particularly strong growth in unit trust, ISA and pensions business
as our clients took encouragement by way of the higher ISA savings
limits and the introduction of increased flexibility for retirement
savings.
This level of new business, together with the continued
excellent retention of existing client funds, resulted in a net
inflow of funds under management of GBP1.3 billion up 9%.
Today, St. James's Place Wealth Management has published
findings from its annual Wealth Account Client Survey for the first
time. With over 47,000 respondents it represents the largest sample
of consumer opinion in UK financial services and reveals how our
clients view their financial future and their concerns.
When asked to specifically consider their three top priorities
for their future wealth, 75% of respondents say ensuring they have
enough to live on in retirement is their highest priority, and 68%
suggest being able to enjoy their retirement without having to
worry over financial matters, is a key focus. Nearly half (47%) of
those surveyed place importance on having sufficient funds to pay
for their long term care should they need it in the future.
Just over a third (38%) believe leaving an inheritance is among
their top three priorities while a similar proportion (37%) talk
more generally of wanting to help their children and/or
grandchildren.
When asked which issues concern them over the next three to five
years, 69% are worried about the state of the UK economy, with 54%
nervous of the outcome of the impending General Election.
Furthermore, 43% are concerned about the potential impact of the UK
leaving the European Union. Only one in three (29%) worry about a
potential rise in interest rates and the cost of living (35%).
As announced earlier in the year, The St. James's Place Money
Management Account, in association with Metro Bank, was launched
last week. Early indications are that our clients have positively
received this additional service.
EEV net asset value per share
The net asset value on the European Embedded Value basis at 31
March 2015 was approximately 700 pence per share (685 pence after
the payment of the full year dividend).
Capital
There have been no material changes to group solvency capital
during the period.
Outlook
There has rarely been a greater need for advice which is why we
remain confident that if we continue to focus on achieving the best
possible outcomes for our clients, through the provision of sound
personal advice, a reliable ongoing service and our distinctive
approach to the management of their wealth, we will continue to
grow our business in line with our objectives, in 2015 and
beyond.
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2. Funds under Management
During the first quarter of 2015 we have once again seen a net
inflow of funds under management which, at GBP1,304 million, was
some 9% higher than the GBP1,191 million for the first quarter of
2014.
Given this strong net inflow and positive returns in the world
stock markets (with the FTSE100 index for example up 3%), total
funds under management increased to GBP55.8 billion.
Unaudited Unaudited
3 Months to 3 Months to
31 March 2015 31 March 2014
GBP'bn GBP'bn
Opening funds under management 52.0 44.3
New money invested* 2.1 1.9
Net investment return 2.5 0.3
--------------- ---------------
56.6 46.5
Regular income withdrawals and maturities (0.2) (0.2)
Surrenders and part surrenders (0.6) (0.5)
--------------- ---------------
Closing funds under management 55.8 45.8
--------------- ---------------
Net inflows 1.3 1.2
=============== ===============
Implied surrender rate as a percentage of average funds
under management 4.1% 4.3%
=============== ===============
* Includes gross new single investments together with the
current year contributions in respect of regular investments
plans
Analysis of Funds under Management
The following table provides an analysis of the funds under
management at 31 March 2015 split by geography and asset type:
31 March 2015 31 March 2014
GBP'bn % of GBP'bn % of
total total
UK Equities 16.0 29% 13.7 30%
North American Equities 11.3 20% 8.9 19%
Fixed Interest 7.5 13% 6.3 14%
European Equities 6.5 12% 5.4 12%
Asia & Pacific Equities 5.1 9% 3.9 9%
Cash 4.6 8% 3.4 7%
Other 2.0 4% 1.6 3%
Property 1.8 3% 1.3 3%
Alternative Investments 1.0 2% 1.3 3%
Total 55.8 100% 45.8 100%
======= ======= ======= =======
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3. SJP New Business
Unaudited
3 Months to
31 March
2015 2014
GBP'm GBP'm
New single investments
Investment 530.1 623.9
Pension 663.0 515.1
Unit trust and ISA 823.0 671.4
-------- --------
2,016.1 1,810.4 +11%
-------- --------
New annualised regular
investments
Investment 5.5 3.2
Pension 24.6 20.7
Protection 0.5 0.5
-------- --------
30.6 24.4 +25%
-------- --------
Total new business
(APE)*
Investment 140.8 132.7
Pension 90.9 72.2
Protection 0.5 0.5
-------- --------
232.2 205.4 +13%
-------- --------
*Calculated as 1/10(th) single investments plus the annualised
regular investments
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4. Third Party New Business
In addition to SJP new business, the Partnership also advises on
the products and services of a number of selected third party
providers.
-- Investment into various schemes (eg VCT and EIS etc)
-- Pensions: Group Personal Pension Schemes, Annuities and
SIPPs
-- Protection and general insurance
During the three month period the total third party single new
business was GBP177.4 million (2014: GBP166.5 million) and total
annualised new regular business was GBP10.4 million (2014: GBP9.5
million).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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