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Q4 New Business Inflows and Funds under Management

25 Jan 2018 07:00

RNS Number : 8458C
St. James's Place PLC
25 January 2018
 

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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

 

25 January 2018

 

ST. JAMES'S PLACE WEALTH MANAGEMENT

 

RECORD INFLOWS AND STRONG INVESTMENT RETURNS

DRIVE FUNDS UNDER MANAGEMENT 20% HIGHER TO £90.7 BILLION

 

 

St. James's Place plc ("SJP"), the wealth management group, today issues an update on new business inflows and funds under management for the twelve months ended 31 December 2017.

 

· Gross inflows of funds of £14.6 billion - up 29%

· Continued strong retention of client funds - 96%

· Net inflow of funds of £9.5 billion - up 40%

· Group funds under management of £90.7 billion - up 20%

· Qualified advisers 3,661 - up 7%

 

 

Andrew Croft, Chief Executive, commented:

 

"It gives me great pleasure to confirm that the strong performance we experienced in the first nine months of 2017 continued into the final quarter, making 2017 a record year.

 

Gross inflows for the final quarter exceeded £4 billion taking full year inflows to £14.6 billion, growth of 29%. The continued strong and improving retention of client funds provided for net inflows of over £2.8 billion in the quarter and £9.5 billion for the twelve months, growth of 40%. This result, together with positive investment returns, increased funds under management by £15.4 billion to £90.7 billion, growth of 20%.

 

At the heart of this sustained growth is the importance we place on maintaining long lasting relationships with, and between, our Partners and clients and serving them well. We continue to see a growing demand for advice and it is therefore also pleasing to report a 7% increase in the number of qualified advisers across our Partner businesses.

 

Our continuing focus on achieving the best possible outcomes for our clients, through the provision of trusted financial advice and our distinctive investment management approach, gives us confidence that we will continue to grow our business, in line with our objectives, in 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. Analysis of Partner and adviser numbers

 

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1. Funds under Management

 

Twelve Months Ended 31 December 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

2.49 

7.26 

4.85 

14.60 

Net investment return

1.69 

2.70 

1.81 

6.20 

Regular income withdrawals and maturities

(0.56)

(0.96)

(1.52)

Surrenders and part surrenders

(1.06)

(0.96)

(1.55)

(3.57)

Matching strategy disinvestment

(0.13)

(0.14)

(0.27)

Closing funds under management

28.31 

36.15 

26.29 

90.75 

Net inflows

0.87 

5.34 

3.30 

9.51 

Implied surrender rate as a percentage of average funds under management

3.9%

3.0%

6.5%

4.3%

 

Included within "UT/ISA & DFM" are closing funds under management of £2.11 billion, gross inflows of £0.49 billion and outflows of £0.10 billion in relation to the Rowan Dartington Group funds under management.

 

In addition, there is a further £496 million of funds under management in third party funds within our Asia business.

 

Twelve Months Ended 31 December 2016

Investment

Pension

UT/ISA & DFM

Total

£'Billion

£'Billion

£'Billion

£'Billion

Opening funds under management

22.52 

20.86 

15.23 

58.61 

Rowan Dartington acquisition

1.26 

1.26 

Gross inflows

2.28 

5.12 

3.95 

11.35 

Net investment return

2.50 

4.02 

2.19 

8.71 

Regular income withdrawals and maturities

(0.52)

(0.84)

(0.11)

(1.47)

Surrenders and part surrenders

(0.90)

(0.91)

(1.29)

(3.10)

Rowan Dartington - Ardan International disposal

(0.05)

(0.05)

Closing funds under management

25.88 

28.25 

21.18 

75.31 

Net inflows

0.86 

3.37 

2.55 

6.78 

Implied surrender rate as a percentage of average funds under management

3.7% 

3.7% 

6.8% 

4.6% 

 

Included within "UT/ISA & DFM" are closing funds under management of £1.57 billion, gross inflows of £0.42 billion and outflows of £0.16 billion in relation to the Rowan Dartington Group funds under management. Also included is the £0.05 billion reduction in funds under management relating to the disposal of Rowan Dartington's non-core international platform business, Ardan International, in December 2016.

 

In addition, there is a further £466 million of funds under management in third party funds within our Asia business.

 

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Three Months Ended 31 December 2017

Investment

Pension

UT/ISA & DFM

Total

£'Billion

£'Billion

£'Billion

£'Billion

Opening funds under management

27.48 

33.44 

24.77 

85.69 

Gross inflows

0.64 

2.22 

1.28 

4.14 

Net investment return

0.54 

1.03 

0.64 

2.21 

Regular income withdrawals and maturities

(0.14)

(0.26)

(0.40)

Surrenders and part surrenders

(0.21)

(0.28)

(0.40)

(0.89)

Closing funds under management

28.31 

36.15 

26.29 

90.75 

Net inflows

0.29 

1.68 

0.88 

2.85 

 

 

Three Months Ended 31 December 2016

Investment

Pension

UT/ISA & DFM

Total

£'Billion

£'Billion

£'Billion

£'Billion

Opening funds under management

25.08 

26.36 

19.94 

71.38 

Gross inflows

0.67 

1.48 

1.13 

3.28 

Net investment return

0.53 

0.88 

0.52 

1.93 

Regular income withdrawals and maturities

(0.13)

(0.23)

(0.04)

(0.40)

Surrenders and part surrenders

(0.27)

(0.24)

(0.32)

(0.83)

Rowan Dartington - Ardan International disposal

(0.05)

(0.05)

Closing funds under management

25.88 

28.25 

21.18 

75.31 

Net inflows

0.27 

1.01 

0.77 

2.05 

 

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2. Analysis of Funds under Management

 

The following table provides an analysis of the funds under management at 31 December split by geography and asset type:

 

31 December 2017

31 December 2016

£'Billion

% of total

£'Billion

% of total

North American Equities

20.0

22%

17.5

23%

UK Equities

19.3

21%

17.3

23%

Fixed Interest

16.7

19%

12.8

17%

European Equities

10.5

12%

8.2

11%

Asia & Pacific Equities

8.5

9%

6.2

8%

Cash

6.6

7%

6.0

8%

Property

2.9

3%

2.4

3%

Alternative Investments

2.6

3%

1.9

3%

Other

3.6

4%

3.0

4%

Total

90.7

100%

75.3

100%

 

 

3. Gross Inflow Figures

 

Unaudited

3 Months to

31 December

Unaudited

12 Months to

31 December

2017

2016

2017

2016

£'Billion

£'Billion

£'Billion

£'Billion

Gross inflows

Investment

0.64

0.67

2.49

2.28

Pension

2.22

1.48

7.26

5.12

Unit Trust/ISA & DFM

1.28

1.13

4.85

3.95

4.14

3.28

+26%

14.60

11.35

+29%

 

 

4. Analysis of Partner and Adviser Numbers

 

Within 2,415 Partner businesses (2016: 2,378), we now have 3,661 qualified advisers (2016: 3,415).

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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