TIDMSTJ
RNS Number : 2677W
St. James's Place PLC
26 April 2016
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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
26 April 2016
ST. JAMES'S PLACE WEALTH MANAGEMENT
STRONG FIRST QUARTER
DRIVES FUNDS UNDER MANAGEMENT TO GBP62.0 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 three months ended 31 March 2016.
-- Gross inflow of funds under management of GBP2.45 billion
(2015: GBP2.11 billion)
-- Continued strong retention of client funds - 95%
-- Net inflow of funds under management of GBP1.36 billion
(2015: GBP1.32 billion)
-- Group funds under management of GBP62.0 billion (2015:
GBP55.8 billion)
Other initiatives:
-- Acquisition of Technical Connection Ltd
-- Launch of the St. James's Place intergenerational mortgage
suite
David Bellamy, Chief Executive, commented:
"Against a backdrop of continued uncertainty across global stock
markets, our business is performing strongly. Supported by a
monthly record GBP1 billion of gross inflows in March, the total
gross inflows for the quarter were GBP2.45 billion, up 16% over the
same period last year. This result, together with the continued
high retention of clients and their investments, took Group funds
under management to GBP62.0 billion.
In addition to advising clients on the more flexible, often
complex, options available in respect of their retirement funds and
changes to the contribution and fund limits which were announced
last year, our Partners have been active in the run up to this
year's spring budget, as speculation of more radical changes grew.
The fact that the Chancellor avoided further changes to Pension tax
relief and chose to give further encouragement to individual
savings through a higher limit for ISAs in 2017, the introduction
of a lifetime ISA and reduced Capital Gains tax, bodes well for the
future.
We remain focused on achieving the best possible outcomes for
our clients, through the provision of sound personal financial
advice. The acquisition of Technical Connection with their
specialist technical support services, together with the new St.
James's Place intergenerational mortgage suite, adds to the
resources and services that our Partners and clients can draw upon
to achieve that."
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The details of the announcement are attached.
Enquiries:
David Bellamy, Chief Tel: 020 7514 1963
Executive Officer
Andrew Croft, Chief Tel: 020 7514 1963
Financial Officer
Tony Dunk, Investor Tel: 020 7514 1963
Relations Director
Bell Pottinger Tel: 020 3772 2566
John Sunnocks
Ben Woodford Email: Bwoodford@BellPottinger.com
This afternoon St. James's Place will host a Capital Markets
Briefing for analysts and investors at The Great Hall, JP Morgan,
60 Victoria Embankment, London EC4Y 0JP. The meeting will commence
at 3pm and finish at 5pm.
The event will provide attendees the opportunity to hear senior
members of our executive management team talk about how we support
the Partnership, a Partner's perspective of the benefits of our
approach and how we plan to integrate the additional services
offered by Rowan Dartington to the Group.
A full recording of the meeting will be published on 27
April.
Notes to editors:-
Acquisition of Technical Connection Ltd
Technical Connection is the financial services sector's
recognised leader in delivering technical support, insight,
proposition development and the provision of continuing
professional development (CPD) to financial advisers and
institutions.
A key supplier of technical resource to St. James's Place since
our inception in 1991, the acquisition strengthens St. James's
Place's existing technical support capability through the addition
of a skilled team of advisory professionals. In addition to
enhancing the Group's ability to provide business-focussed
technical support to its Partners, Technical Connection will play a
key role in business and proposition development activities.
Technical Connection's online knowledge management platform,
Techlink Professional, will also provide the foundation for further
digital evolution of St. James's Place Partner support.
David Bellamy, Chief Executive, commented:
"In an increasingly complex world, the need for reliable and
expert advice has never been more obvious. Bringing together the
experience and innovation of Technical Connection with St. James's
Place's existing technical support team creates a very powerful
centre of business focussed technical expertise to enhance the
support we provide to our Partners and advisers in helping clients
to navigate their financial decisions."
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Launch of the St. James's Place Intergenerational Mortgage
suite
St. James's Place has announced the launch of the St. James's
Place Intergenerational Mortgage Range, in conjunction with Metro
Bank. This new product range, exclusive to clients of St. James's
Place, is specifically designed for parents and grandparents who
want to support their children or grandchildren in buying their
first home.
Intergenerational wealth transfer creates many positive
opportunities to support generations within families. The new
mortgage range offers flexibility to families providing support to
their young relatives and is designed to make home ownership
achievable, affordable and more secure. A primary benefit of the
product range is that it provides a number of options to allow them
to plan for their own future, while supporting their relatives to
get onto the property ladder.
David Bellamy, Chief Executive, commented:
"We now live in a world where it's possible for four generations
to exist within a family. As the UK demographics change, wealth is
increasingly being transferred between generations during
lifetimes. While offering such support, families also need to be
secure in their own future. The Intergenerational Mortgage Range
allows families to contribute to their children's home-owning
ambitions but also enables them to be secure in their own future
and plan for the longer term."
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
During the first quarter of 2016 gross inflows to our funds
under management were up 16% at GBP2.45 billion (2015: GBP2.11
billion) and we continue to experience high retention of existing
clients and their investments, such that we are able to report net
inflows of GBP1.36 billion (2015: GBP1.32 billion) in the quarter.
Acquired funds under management relate to the acquisition of the
discretionary fund manager (DFM), Rowan Dartington.
Three Months Ended Investment Pension UT/ISA Total
31 March 2016 & DFM
GBP'Billion GBP'Billion GBP'Billion GBP'Billion
Opening funds under
management 22.52 20.86 15.23 58.61
Rowan Dartington acquisition - - 1.26 1.26
Gross inflows 0.46 1.18 0.81 2.45
Net investment return 0.17 0.49 0.13 0.79
Regular income withdrawals
and maturities (0.13) (0.21) (0.01) (0.35)
Surrenders and part
surrenders (0.19) (0.26) (0.29) (0.74)
------------ ------------ ------------ ------------
Closing funds under
management 22.83 22.06 17.13 62.02
------------ ------------ ------------ ------------
Net inflows 0.14 0.71 0.51 1.36
------------ ------------ ------------ ------------
Implied surrender rate
as a percentage of
average funds under
management 3.4% 3.7% 6.9% 4.5%
------------ ------------ ------------ ------------
Included within "UT/ISA & DFM" are gross inflows of GBP0.04
billion and outflows from regular income withdrawals and maturities
of GBP0.01 billion in relation to the Rowan Dartington Group funds
under management.
In addition, there is a further GBP421 million of funds under
management in third party funds within our Asia business.
Three Months Ended Investment Pension UT/ISA Total
31 March 2015
GBP'Billion GBP'Billion GBP'Billion GBP'Billion
Opening funds under
management 21.14 18.08 12.79 52.01
Gross inflows 0.59 0.73 0.79 2.11
Net investment return 0.84 1.00 0.64 2.48
Regular income withdrawals
and maturities (0.12) (0.12) - (0.24)
Surrenders and part
surrenders (0.19) (0.12) (0.24) (0.55)
------------ ------------ ------------ ------------
Closing funds under
management 22.26 19.57 13.98 55.81
------------ ------------ ------------ ------------
Net inflows 0.28 0.49 0.55 1.32
------------ ------------ ------------ ------------
Implied surrender rate
as a percentage of
average funds under
management 3.4% 2.6% 7.3% 4.1%
(MORE TO FOLLOW) Dow Jones Newswires
April 26, 2016 02:00 ET (06:00 GMT)
------------ ------------ ------------ ------------
In addition, there was a further GBP498 million of funds under
management in third party funds within our Asia business.
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2. Analysis of Funds under Management
The following table provides an analysis of the funds under
management at 31 March 2016 split by geography and asset type:
31 March 2016 31 March 2015
GBP'Billion % of GBP'Billion % of
total total
UK Equities 15.4 25% 16.0 29%
North American Equities 13.8 22% 11.3 20%
Fixed Interest 9.8 16% 7.5 13%
European Equities 6.4 10% 6.5 12%
Asia & Pacific Equities 5.1 8% 5.1 9%
Cash 4.4 7% 4.6 8%
Property 2.3 4% 2.0 4%
Alternative Investments 1.4 2% 1.8 3%
Other* 3.4 6% 1.0 2%
Total 62.0 100% 55.8 100%
------------ ------- ------------ -------
*Included within "Other" is GBP1.29 billion (2015: Nil) in
relation to Rowan Dartington Group funds under management.
3. Gross Inflow Figures
Unaudited
3 Months
to
31 March
2016 2015
GBP'Billion GBP'Billion
Gross inflows
Investment 0.46 0.59
Pension 1.18 0.73
Unit Trust/ISA
& DFM 0.81 0.79
------------ ------------
2.45 2.11
------------ ------------
4. EEV Net Asset Value per Share
The net asset value on the European Embedded Value basis at 31
March 2016 was approximately 760 pence per share (cum div) and 740
pence per share after the payment of the full year dividend on 13
May 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGMGZDKKLGVZM
(END) Dow Jones Newswires
April 26, 2016 02:00 ET (06:00 GMT)
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