Last checked at 24 Apr 2018 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
24 April 2018
ST. JAMES'S PLACE WEALTH MANAGEMENT
STRONG NEW BUSINESS PERFORMANCE AND EXCELLENT RETENTION
DRIVE NET INFLOWS 31% HIGHER
St. James's Place plc ("SJP"), the wealth management group, today issues an update on new business inflows and funds under management for the three months ended 31 March 2018.
• Gross inflow of funds of £3.91 billion (2017: £3.23 billion)
• Continued strong retention of client funds - 96%
• Net inflow of funds of £2.60 billion (2017: £1.99 billion)
• Group funds under management of £89.91 billion (2017: £79.84 billion)
Andrew Croft, Chief Executive, commented:
"After a record year for new business in 2017, we have maintained momentum in the first quarter of 2018. Gross inflows of £3.91 billion in the quarter were 21% higher than the prior year, while net inflows of £2.60 billion were 31% higher, reflecting the continuing excellent retention of existing client investments. Weaker investment markets resulted in funds under management closing at £89.91 billion, marginally lower over the three months but still up strongly over the past year.
We continue to see a growing market for trusted face-to-face financial advice and believe St. James's Place remains ideally placed to meet this need. This growing market, together with the strong start we have made to 2018, reinforces our confidence in our ability to achieve our stated objective of 15-20% growth in gross inflows during 2018 and beyond."
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The details of the announcement are attached.
Enquiries:
Andrew Croft, Chief Executive Officer | Tel: 020 7514 1963 |
Craig Gentle, Chief Financial Officer | Tel: 020 7514 1963 |
Tony Dunk, Investor Relations Director | Tel: 020 7514 1963 |
Brunswick Group | Tel: 020 7404 5959 |
Charles Pretzlik | Email: cpretzlik@brunswickgroup.com |
Tom Burns | Email: tburns@brunswickgroup.com |
Contents
1. Funds under management
2. Analysis of funds under management
3. Gross inflow figures
4. EEV net asset value per share
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1. Funds under Management
Three Months Ended 31 March 2018 | Investment | Pension | UT/ISA & DFM | Total | |||
£'Billion | £'Billion | £'Billion | £'Billion | ||||
Opening funds under management | 28.31 | 36.15 | 26.29 | 90.75 | |||
Gross inflows | 0.60 | 2.17 | 1.14 | 3.91 | |||
Net investment return | (0.97) | (1.36) | (1.11) | (3.44) | |||
Regular income withdrawals and maturities | (0.16) | (0.29) | - | (0.45) | |||
Surrenders and part surrenders | (0.21) | (0.26) | (0.39) | (0.86) | |||
Closing funds under management | 27.57 | 36.41 | 25.93 | 89.91 | |||
Net inflows | 0.23 | 1.62 | 0.75 | 2.60 | |||
Implied surrender rate as a percentage of average funds under management | 3.0% | 2.9% | 6.0% | 3.8% |
Included within "UT/ISA & DFM" are closing funds under management of £2.09 billion, gross inflows of £0.11 billion and outflows of £0.02 billion in relation to the Rowan Dartington Group funds under management.
Three Months Ended 31 March 2017 | Investment | Pension | UT/ISA & DFM | Total | |||
£'Billion | £'Billion | £'Billion | £'Billion | ||||
Opening funds under management | 25.88 | 28.25 | 21.18 | 75.31 | |||
Gross inflows | 0.58 | 1.47 | 1.18 | 3.23 | |||
Net investment return | 0.82 | 1.17 | 0.82 | 2.81 | |||
Regular income withdrawals and maturities | (0.14) | (0.23) | - | (0.37) | |||
Surrenders and part surrenders | (0.27) | (0.22) | (0.38) | (0.87) | |||
Matching strategy disinvestment | (0.13) | (0.14) | - | (0.27) | |||
Closing funds under management | 26.74 | 30.30 | 22.80 | 79.84 | |||
Net inflows | 0.17 | 1.02 | 0.80 | 1.99 | |||
Implied surrender rate as a percentage of average funds under management | 4.1% | 3.0% | 6.9% | 4.5% |
Included within "UT/ISA & DFM" are closing funds under management of £1.71 billion, gross inflows of £0.09 billion and outflows of £0.02 billion in relation to the Rowan Dartington Group funds under management.
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2. Analysis of Funds under Management
The following table provides an analysis of the funds under management at 31 March 2018 split by geography and asset type:
31 March 2018 | 31 March 2017 | ||||||
£'Billion | % of total | £'Billion | % of total | ||||
North American Equities | 19.1 | 21% | 18.3 | 23% | |||
UK Equities | 18.5 | 21% | 18.3 | 23% | |||
Fixed Interest | 17.9 | 20% | 13.7 | 17% | |||
European Equities | 10.2 | 12% | 9.1 | 12% | |||
Asia & Pacific Equities | 8.2 | 9% | 6.6 | 8% | |||
Cash | 6.5 | 7% | 5.9 | 7% | |||
Property | 3.0 | 3% | 2.6 | 3% | |||
Alternative Investments | 2.7 | 3% | 2.1 | 3% | |||
Other | 3.8 | 4% | 3.2 | 4% | |||
Total | 89.9 | 100% | 79.8 | 100% | |||
3. Gross Inflow Figures
Unaudited 3 Months to 31 March | |||||||
2018 | 2017 | ||||||
£'Billion | £'Billion | ||||||
Gross inflows | |||||||
Investment | 0.60 | 0.58 | +3% | ||||
Pension | 2.17 | 1.47 | +48% | ||||
Unit Trust/ISA & DFM | 1.14 | 1.18 | -3% | ||||
3.91 | 3.23 | +21% | |||||
4. EEV Net Asset Value per Share
The net asset value on the European Embedded Value basis at 31 March 2018 was approximately 1,060 pence per share (cum div) and 1,035 pence per share after the payment of the proposed full year dividend on 1 June 2018.