St. James's Place PLC
-1-
ST. JAMES'S PLACE plc
27 St. James's Place, London SW1A 1NR
Telephone 020 7493 8111 Facsimile 020 7493 2382
PRESS RELEASE
24 October 2013
INTERIM MANAGEMENT STATEMENT
FOR THREE MONTHS TO 30 SEPTEMBER 2013
CONTINUED STRONG MOMENTUM
WITH RECORD FUNDS UNDER MANAGEMENT OF £41.8 BILLION
St. James's Place plc ("SJP"), the wealth management group, today issues its interim management statement for the three months ended 30 September 2013.
New Business
· Total single investments of £1.7 billion (2012: £1.3 billion), up 27%
· Total new business on an APE basis of £203.9 million (2012: £165.6 million), up 23%
Funds under Management
· Net inflow of funds under management of £1.03 billion (2012: £0.75 billion) up 37%
· Funds under management of £41.8 billion (2012: £32.8 billion) up 5% over the three months and 20% since the start of the year
· Continue to retain 95% of existing clients' funds
David Bellamy, Chief Executive, commented:
"I am very pleased to be reporting another quarter of strong growth in new investments which, combined with our investment performance and the continued high retention of our clients' existing funds, saw our funds under management increase by £1.9 billion in the quarter to a record £41.8 billion, up £7.0 billion since the start of the year.
There is a reassuring consistency about our business that, at its core, is about maintaining long lasting relationships with our Partners and clients alike and serving them well. The focus we have maintained on those relationships and providing our clients with reliable added value advice and investment performance has enabled us to double our funds under management over the last four years.
We believe in face-to-face advice and are committed to delivering this through our dedicated and professional team of advisers, the Partnership. We also believe in active investment management with the breadth of our investment proposition today providing a balance and dependency that our clients appreciate.
The momentum in our business is such that we remain confident in our ability to deliver growth in line with our objectives during the final quarter of 2013 and beyond."
-2-
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 |
Tulchan Communications Group Ltd David Shriver Michelle Clarke |
Tel: |
020 7353 4200 |
-3-
ST. JAMES'S PLACE WEALTH MANAGEMENT
NEW BUSINESS FIGURES TO 30 SEPTEMBER 2013
TOTAL LONG TERM SAVINGS
|
Unaudited 3 Months to 30 September |
|
Unaudited 9 Months to 30 September |
New PREMIUMS |
|
2013 £'m |
|
2012 £'m |
|
Change % |
|
|
|
2013 £'m |
|
2012 £'m |
|
Change% |
|
New Regular Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Investment |
|
5.4 |
|
3.6 |
|
50% |
|
|
|
11.7 |
|
5.9 |
|
98% |
|
- Pensions |
|
23.5 |
|
23.2 |
|
1% |
|
|
|
79.7 |
|
89.2 |
|
(11%) |
|
- Protection |
|
6.2 |
|
5.7 |
|
9% |
|
|
|
17.4 |
|
15.6 |
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35.1 |
|
32.5 |
|
8% |
|
|
|
108.8 |
|
110.7 |
|
(2%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Single Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Investment |
|
630.4 |
|
473.6 |
|
33% |
|
|
|
1,758.5 |
|
1,354.9 |
|
30% |
|
- Pensions |
|
526.2 |
|
556.9 |
|
(6%) |
|
|
|
1,726.4 |
|
1,637.0 |
|
5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,156.6 |
|
1,030.5 |
|
12% |
|
|
|
3,484.9 |
|
2,991.9 |
|
16% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Trust Sales (including PEPs and ISAs) |
|
531.6 |
|
300.7 |
|
77% |
|
|
|
1,731.7 |
|
1,096.1 |
|
58% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited 3 Months to 30 September |
|
Unaudited 9 Months to 30 September |
|
|
2013 £'m |
|
2012 £'m |
|
Change % |
|
|
|
2013 £'m |
|
2012 £'m |
|
Change% |
|
NEW BUSINESS (RP + 1/10TH SP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment |
|
121.6 |
|
81.0 |
|
50% |
|
|
|
360.7 |
|
251.0 |
|
44% |
|
Pensions |
|
76.1 |
|
78.9 |
|
(4%) |
|
|
|
252.3 |
|
252.9 |
|
- |
|
Protection |
|
6.2 |
|
5.7 |
|
9% |
|
|
|
17.4 |
|
15.6 |
|
12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
203.9 |
|
165.6 |
|
23% |
|
|
|
630.4 |
|
519.5 |
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-4-
ST. JAMES'S PLACE WEALTH MANAGEMENT
NEW BUSINESS FIGURES TO 30 SEPTEMBER 2013
MANUFACTURED LONG TERM SAVINGS
|
Unaudited 3 Months to 30 September |
|
Unaudited 9 Months to 30 September |
New PREMIUMS |
|
2013 £'m |
|
2012 £'m |
|
Change % |
|
|
|
2013 £'m |
|
2012 £'m |
|
Change% |
|
New Regular Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Investment |
|
5.4 |
|
3.6 |
|
50% |
|
|
|
11.7 |
|
5.9 |
|
98% |
|
- Pensions |
|
20.2 |
|
19.8 |
|
2% |
|
|
|
63.3 |
|
59.8 |
|
6% |
|
- Protection |
|
0.5 |
|
0.7 |
|
(29%) |
|
|
|
1.7 |
|
2.1 |
|
(19%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26.1 |
|
24.1 |
|
8% |
|
|
|
76.7 |
|
67.8 |
|
13% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Single Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Investment |
|
576.3 |
|
466.1 |
|
24% |
|
|
|
1,612.1 |
|
1,304.3 |
|
24% |
|
- Pensions |
|
429.9 |
|
439.3 |
|
(2%) |
|
|
|
1,427.4 |
|
1,371.9 |
|
4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,006.2 |
|
905.4 |
|
11% |
|
|
|
3,039.5 |
|
2,676.2 |
|
14% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unit Trust Sales (including PEPs and ISAs) |
|
531.6 |
|
300.7 |
|
77% |
|
|
|
1,731.7 |
|
1,096.1 |
|
58% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited 3 Months to 30 September |
|
Unaudited 9 Months to 30 September |
|
|
2013 £'m |
|
2012 £'m |
|
Change % |
|
|
|
2013 £'m |
|
2012 £'m |
|
Change% |
|
NEW BUSINESS (RP + 1/10TH SP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment |
|
116.2 |
|
80.2 |
|
45% |
|
|
|
346.1 |
|
245.9 |
|
41% |
|
Pensions |
|
63.2 |
|
63.7 |
|
(1%) |
|
|
|
206.0 |
|
197.0 |
|
5% |
|
Protection |
|
0.5 |
|
0.7 |
|
(29%) |
|
|
|
1.7 |
|
2.1 |
|
(19%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
179.9 |
|
144.6 |
|
24% |
|
|
|
553.8 |
|
445.0 |
|
24% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of total new business |
|
88% |
|
87% |
|
|
|
|
|
88% |
|
86% |
|
|
|
-5-
ST. JAMES'S PLACE WEALTH MANAGEMENT
NEW BUSINESS FIGURES TO 30 SEPTEMBER 2013
NON MANUFACTURED LONG TERM SAVINGS
For the three months:
§ Investment premiums of £54.1 million (2012: £7.5 million), amounting to £5.4 million (2012: £0.8 million) on an APE basis.
§ Pension single premiums of £96.3 million (2012: £117.6 million) and regular premiums of £3.3 million (2012: £3.4 million), amounting to £12.9 million (2012: £15.2 million) on an APE basis.
§ Protection business of £5.7 million regular premiums (2012: £5.0 million).
§ Total new business, on an APE basis, of £24.0 million (2012: £21.0 million).
For the nine months:
§ Investment premiums of £146.4 million (2012: £50.6 million), amounting to £14.6 million (2012: £5.1 million) on an APE basis.
§ Pension single premiums of £299.0 million (2012: £265.1 million) and regular premiums of £16.4 million (2012: £29.4 million), amounting to £46.3 million (2012: £55.9 million) on an APE basis.
§ Protection business of £15.7 million regular premiums (2012: £13.5 million).
§ Total new business, on an APE basis, of £76.6 million (2012: £74.5 million).
-6-
Commentary
During the third quarter world stock markets have continued their upward trajectory, with the FTSE100 (as an example) up some 4% over the period. In addition, economic indicators are improving, which suggest a cautious recovery in the economies of the developed nations.
Against this backdrop we have continued to see strong momentum in new business and funds under management.
Review of new business
Total single investments increased by 27% during the third quarter to £1.69 billion bringing the year to date single investments to in excess of £5.2 billion, 28% ahead of the corresponding period last year. Within these figures there was particularly strong growth in our ISA and unit trust sales at 77% for the quarter and 58% for the year to date.
On the APE measure, total new business was up 23% for the quarter at £203.9 million whilst manufactured business, which represented 88% of the Group total, was up 24% to £179.9 million.
Funds under management
During the third quarter of 2013 we have seen a 37% increase in net inflows of funds under management which, at £1.03 billion (2012: £0.75 billion), brings the total net inflow for the year to date to £3.02 billion (2012: £2.26 billion) up 34%.
The increase in the world stock markets together with these strong net inflows have resulted in funds under management increasing to £41.8 billion, growth of 5% during the quarter, 20% since the start of the year and 27% over twelve months.
The table below provides an analysis of the movement in funds under management for the nine months to the end of September.
|
|
Unaudited 9 Months to 30 September 2013 |
|
Unaudited 9 Months to 30 September 2012 |
|
|
£'bn |
|
£'bn |
|
|
|
|
|
Opening funds under management |
|
34.8 |
|
28.5 |
New money invested |
|
4.9 |
|
3.9 |
Net investment return |
|
4.0 |
|
2.1 |
|
|
43.7 |
|
34.5 |
Regular income withdrawals & maturities |
|
(0.5) |
|
(0.5) |
Surrenders & part surrenders |
|
(1.4) |
|
(1.2) |
|
|
|
|
|
Closing funds under management |
|
41.8 |
|
32.8 |
|
|
|
|
|
Annualised surrender rate as a % of average funds under management |
|
4.7% |
|
5.0% |
|
|
|
|
|
-7-
Analysis of funds under management
The following table provides an analysis of the funds under management at 30 September split by geography and asset type:
|
FUM £'bn |
|
% of total |
|
|
|
|
UK Equities |
12.4 |
|
30% |
European Equities |
4.8 |
|
12% |
North American Equities |
7.6 |
|
18% |
Asia & Pacific Equities |
3.9 |
|
9% |
Property |
1.0 |
|
2% |
Fixed Interest |
5.9 |
|
14% |
Alternative Investments |
1.3 |
|
3% |
Cash |
3.2 |
|
8% |
Other |
1.7 |
|
4% |
|
|
|
|
|
|
|
|
Total |
41.8 |
|
100% |
|
|
|
|
Net asset value per share
The net asset value per share at 30 September 2013, on a European Embedded Value basis, is estimated to be 540 pence.
Capital
There have been no material changes to solvency capital during the third quarter.
Outlook
The continued growth in the world stock markets together with the improving economic outlook has translated to an improvement in the confidence of retail investors.
There is a reassuring consistency about our business that, at its core, is about maintaining long lasting relationships with our Partners and clients alike and serving them well. The focus we have maintained on those relationships and providing our clients with reliable added value advice and investment performance has enabled us to double our funds under management over the last four years.
We believe in face-to-face advice and are committed to delivering this through our dedicated and professional team of advisers, the Partnership. We also believe in active investment management with the breadth of our investment proposition today providing a balance and dependency that our clients appreciate.
The momentum in our business is such that we remain confident in our ability to deliver growth in line with our objectives during the final quarter of 2013 and beyond.
