Last checked at 22 Jan 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
22 January 2015
ST. JAMES'S PLACE WEALTH MANAGEMENT
FUNDS UNDER MANAGEMENT INCREASE TO A RECORD £52 BILLION
St. James's Place plc ("SJP"), the wealth management group, today issues its new business update for the twelve months ended 31 December 2014.
Highlights:
• Total new single investments of £7.8 billion (2013: £6.6 billion) - up 18%
• Retention of clients existing funds under management at 96%
• Net inflow of funds under management of £5.09 billion (2013: £4.23 billion) - up 20%
• Funds under management of £52 billion (2013: £44.3 billion) - up 17%
• SJP new business on an APE basis of £895.6 million (2013: £762.9 million) - up 17%
• Partnership numbers up 8.9% to 2,132 (including new Partners in Asia)
• Total number of qualified advisers up 10.3% to 2,835
David Bellamy, Chief Executive, commented:
"I am delighted to report another record year of new investments. These results, together with the continued strong retention of our client funds and positive investment returns, saw our funds under management increase by £7.7 billion to a record £52 billion.
We attracted over 50,000 new clients in the year and our record on retention underpins our belief that, as well as the positive investment returns and the individual advice they can rely on, clients value the human relationship and highly personal interaction that our proposition delivers. This is evidenced by the consistency of our growth in recent years with funds under management growing by a compound 19% pa for both the last 5 year and 10 year periods.
I'm also pleased to report that through the continued acquisition of established advisers, the integration of our acquisition in Asia and Academy students graduating in the year, we start 2015 with 10% more qualified advisers in the St. James's Place Partnership, which bodes well for the future.
Despite the uncertainty that markets face in 2015, the momentum of our business, coupled with the increasing need for professional financial advice, reinforces our confidence in the future growth opportunities."
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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 Sunnucks & Ben Woodford |
Contents
1. Funds under management
2. SJP new business
3. Third party new business
4. Capital and dividend
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1. Funds under Management
During the fourth quarter of 2014 we have once again seen a net inflow of funds under management which, at £1.38 billion (2013: £1.21 billion), brings the total net inflow for the year to date to £5.09 billion (2013: £4.23 billion), up 20%.
Given this strong net inflow, total funds under management increased to £52 billion.
| Unaudited 3 Months to 31 December |
| Unaudited 12 Months to 31 December | ||||
2014 | 2013 | 2014 | 2013 | ||||
£'BN | £'BN | £'BN | £'BN | ||||
Opening funds under management | 49.1 | 41.8 | 44.3 | 34.8 | |||
New money invested* | 2.1 |
| 1.9 |
| 7.9 | 6.8 | |
Net investment return | 1.5 |
| 1.2 |
| 2.6 | 5.2 | |
Regular income withdrawals and maturities | (0.2) |
| (0.2) |
| (0.9) | (0.7) | |
Surrenders and part surrenders | (0.5) |
| (0.4) |
| (1.9) | (1.8) | |
Closing funds under management | 52.0 |
| 44.3 |
| 52.0 | 44.3 | |
Net inflows | 1.38 |
| 1.21 |
| 5.09 |
| 4.23 |
Implied surrender rate as a percentage of average funds under management |
|
|
| 4.0% | 4.7% | ||
* 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 December:
| 31 December 2014 | 31 December 2013 | |||||
£'BN |
| % of total |
| £'BN |
| % of total | |
UK Equities | 14.9 |
| 29% |
| 13.3 |
| 30% |
North American Equities | 10.4 |
| 20% |
| 8.4 |
| 19% |
Fixed Interest | 7.1 |
| 14% |
| 6.1 |
| 14% |
European Equities | 6.0 |
| 11% |
| 5.0 |
| 11% |
Asia & Pacific Equities | 4.8 |
| 9% |
| 3.9 |
| 9% |
Cash | 4.4 |
| 8% |
| 3.6 |
| 8% |
Property | 1.5 |
| 3% |
| 1.1 |
| 2% |
Alternative Investments | 0.9 |
| 2% |
| 1.3 |
| 3% |
Other | 2.0 |
| 4% |
| 1.6 |
| 4% |
Total | 52.0 | 100% |
| 44.3 |
| 100% | |
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2. SJP New Business
Unaudited 3 Months to 31 December | Unaudited 12 Months to 31 December | ||||||
2014 | 2013 | 2014 | 2013 | ||||
£'M | £'M | £'M | £'M | ||||
New single investments | |||||||
Investment | 649.1 | 702.3 | 2,449.9 | 2,314.4 | |||
Pension | 609.5 | 537.0 | 2,187.4 | 1,964.4 | |||
Unit Trust and ISA | 754.0 | 568.5 | 3,126.1 | 2,300.2 | |||
2,012.6 | 1,807.8 | +11% | 7,763.4 | 6,579.0 | +18% | ||
New annualised regular investments | |||||||
Investment | 5.3 | 4.8 | 18.0 | 16.5 | |||
Pension | 28.0 | 22.8 | 99.0 | 86.1 | |||
Protection | 0.6 | 0.7 | 2.3 | 2.4 | |||
33.9 | 28.3 | +20% | 119.3 | 105.0 | +14% | ||
Total new business (APE)* | |||||||
Investment | 145.6 | 131.9 | 575.6 | 478.0 | |||
Pension | 88.9 | 76.5 | 317.7 | 282.5 | |||
Protection | 0.6 | 0.7 | 2.3 | 2.4 | |||
235.1 | 209.1 | +12% | 895.6 | 762.9 | +17% | ||
*Calculated as 1/10th single investments plus the annualised regular investments
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3. 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
For the three month period to 31 December 2014, the total third party single new business was £143.6 million (2013: £145.7 million) and total annualised new regular business was £15.2 million (2013: £11.1 million).
For the twelve month period to 31 December 2014, the total third party single new business was £598.1 million (2013: £591.1 million) and total annualised new regular business was £51.8 million (2013: £43.2 million).
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4. Capital and Dividend
Capital
There have been no material changes to solvency capital during the final quarter. The investment policy for non-linked assets remains on a prudent basis, with no exposure to equity investments: non-linked liabilities are matched by government backed gilts and bonds, and surplus assets are invested in AAA rated money market funds.
Dividend
As stated at the time of our half year results announcement, the Board expects to increase the full year dividend by 40% and this remains our intention.