Ifg Regulatory News (IFP)

IFG Group plc - Interim Management Statement

19 November 2013

Highlights:

· James Hay Partnership records 4,220 new SIPPs to October (Oct 2012: 1,938)

· Total of 39,070 SIPPs under administration at end October 2013

· Saunderson House wins 125 new clients with continued growth in revenue and operating profit

· IFG Ireland Corporate Pensions gains 31 new clients

· Continued investment in management strength and depth

IFG Group plc, one of the leading providers of SIPPs (self-invested personal pensions) and transparent fee-based financial advice in the UK and Ireland, issues the following update covering its business from January to October 2013. 

Group Performance

The Group is performing well. The trends of the first half have continued with performance indicators, such as new SIPP sales and private client wins, maintaining their momentum.

With a deleveraged balance sheet and positive net cash, the Group is in a strong financial position.

IFG's sound regulatory position and financial strength will allow us to continue to invest in and expand our pension administration and advisory businesses. With clear strategic focus, a strong balance sheet and a strengthened management team, the Group is well-positioned for growth.

Trading Update

Pensions Administration

James Hay Partnershipadministers over 42,000 self-directed pension schemes in SIPPs, SSAS' (small self administered schemes) and Wraps with circa £15 billion assets under administration.

Sales of new SIPPs are a key performance measure for James Hay Partnership. When we acquired James Hay in March 2010, a yearly target of 4,000 SIPPs by Year 5 was set. This milestone has been achieved with 4,220 new SIPPs written by the end of October 2013 (Oct 2012: 1,938). Simultaneously, and despite the low interest rate environment and competitive marketplace, average revenue per SIPP has remained stable.

In addition to the sustained sales momentum, assets under administration continue to grow and are now more than £15 billion. This places James Hay Partnership as the fifth largest platform provider in the UK, according to Platforum.

Attrition has been reduced from the acquisition level of 10% and year to date is running at an annualised rate of 8%.

James Hay Partnership is well-positioned in a growing market with sound business dynamics, we continue to invest for future growth in the key areas of sales, marketing and distribution, efficiency/IT and platform development. Under the leadership of Alastair Conway and to assist in the delivery of our strategy, we have restructured the management team and added two new senior managers. In October, we announced the appointments of Pete Burtonshaw (formerly of Openwork and Fidelity Investment Managers - Platform Development) as Chief Operating Officer and Paul Bagley (formerly of Cofunds) as Director of Distribution Development.

Noting the FCA's recent guide for SIPP operators, James Hay Partnership is well-placed and resourced. Specifically, in relation to capital adequacy, the business already holds surplus resources in excess of regulatory and working capital needs.

Independent Financial Advisory

Saunderson House is an independent financial advisor, based in the City of London, and provides objective and comprehensive advice to private clients, charities, trustees and pension funds. It currently manages over £3.1 billion of assets and has continued its excellent investment performance track record throughout 2013.

Trading in Saunderson House is good with revenue and operating profit through October ahead of the prior year period. Revenue is generated on a time-charge basis and year to date recovery rates of billable hours are running ahead of the business' 80% target rate.

Our investment in people, and particularly in developing client-winning skills, is yielding results. New client wins of 125 are almost 50% ahead of the prior year period (Oct 2012: 85). We will continue to build the business through further investment in people, marketing, brand development and IT, as the greater use of technology will generate efficiency gains.

Under the direction of Tony Overy, the management team has been strengthened with the appointment of Duncan Ross (formerly of Citi, Global Transaction Services) as Chief Operating Officer and Beverly Landais (formerly of Devereux Chambers) as Marketing and Business Development Director.

The Retail Distribution Review came into effect on 1 January 2013 causing some disruption to the competitive landscape. However, the impact on Saunderson House and its clients was minimal given its long-established transparent fee-based model. Looking forward, we believe the post-RDR regime will create considerable opportunities for growth at Saunderson House.

The other financial advisory business, IFG Financial Services, is performing well and continues to make good progress in converting clients to its new RDR proposition.

Ireland

In Ireland, the Group provides pension administration (Group and Individual) and financial advisory services. These businesses are delivering a steady performance despite the difficult trading conditions.

In IFG Corporate Pensions, funds under management grew to €930 million at the end of October and year to date 31 new client wins have been secured.

Ends.

For furtherinformation please contact:

Mark Bourke Niamh Hore

Chief Executive Investor Relations & Corporate Development

IFG Group plc IFG Group plc

Tel +353 1 275 2800 Tel: +353 1 275 2866

IFG Group plc

Booterstown Hall

Booterstown

Co Dublin

www.ifggroup.com