Last checked at 28 Apr 2015 07:00
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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 £55.8 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 £232.2 million (2014: £205.4 million) - up 13%
• Total new single investments of £2.0 billion (2014: £1.8 billion ) - up 11%
• Continued strong retention of clientfunds - 96%
• Net inflow of funds under management of £1.30 billion (2014: £1.19 billion) - up 9%
• Funds under management of £55.8 billion (2014: £45.8 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 £2 billion and continuing high retention of our clients' existing funds, taking our funds under management to £55.8 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 Officer | Tel: 020 7514 1963 |
Andrew Croft, Chief Financial Officer | Tel: 020 7514 1963 |
Tony Dunk, Investor Relations Director | Tel: 020 7514 1963 |
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 £2.0 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 £1.3 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 £1,304 million, was some 9% higher than the £1,191 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 £55.8 billion.
Unaudited 3 Months to 31 March 2015 | Unaudited 3 Months to 31 March 2014 | |||
£'bn | £'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 | ||||||
£'bn | % of total | £'bn | % of 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 | |||||||
£'m | £'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 1/10th 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 £177.4 million (2014: £166.5 million) and total annualised new regular business was £10.4 million (2014: £9.5 million).