Interim Management Statement Q1 New Business

RNS Number : 9536F

St. James's Place PLC

05 May 2011

 



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ST. JAMES'S PLACE plc

27 St. James's Place, London SW1A 1NR

Telephone [phone]    Facsimile 020 7493 2382

PRESS RELEASE

5 May 2011

ST. JAMES'S PLACE WEALTH MANAGEMENT

INTERIM MANAGEMENT STATEMENT

FOR THREE MONTHS TO 31 MARCH 2011

CONTINUED STRONG GROWTH WITH NEW BUSINESS UP 18%

AND NEW INVESTMENTS OF £1.3 BILLION

St. James's Place plc ("SJP"), the wealth management group, today issues its interim management statement for the three months ended 31 March 2011.

Highlights for the three months are:

New Business

·     Total new single investments of £1,288 million (2010: £1,115 million) up 16%

·     Combined unit trust and ISA investments of £360.3 million (2010: £295.6 million) up 22%, with ISA business up 28%

·     Total new business on an Annual Premium Equivalent (APE) basis of £156.7 million (2010: £133.3 million) up 18%

Funds under Management

·     Funds under management of £28.0 billion, up 4% for the year to date and 20% over the twelve months

·     Net inflow of funds under management of £0.8 billion and continued 95% retention

David Bellamy, Chief Executive, commented:

"We are pleased to report a good start to the year for St. James's Place, with the Group having grown new business 18% against what was a strong comparator for 2010. Funds under management have grown 4% to £28.0 billion despite little help from stock markets over the quarter, highlighting the continued momentum in new business together with our excellent retention of existing client funds.

The increasing breadth of our investment proposition and the strength of our distribution leaves us well placed to deliver continued strong growth in the business going forward."

The details of the announcement are attached.

Enquiries:

David Bellamy, Chief Executive			Tel: [phone]
Andrew Croft, Group Finance Director			Tel: [phone]
Tulchan Communications Group Ltd			Tel: [phone]
	John Sunnucks / Mal Patel

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ST. JAMES'S PLACE GROUP

NEW BUSINESS FIGURES

FIRST QUARTER 2011

TOTAL

LONG TERM SAVINGS

		Unaudited 3 Months to 31 March 2011
NEW PREMIUMS		2011		2010		Change
		£'m		£'m		%
New Regular Premiums
- Pensions		23.3		17.4		34%
- Protection		4.6		4.4		5%
		27.9		21.8		28%
New Single Premiums
- Investment		518.0		441.0		17%
- Pensions		410.0		378.4		8%
		928.0		819.4		13%
Unit Trust Sales		360.3		295.6		22%
(including PEPs and ISAs)
NEW BUSINESS		2011		2010		Change
(RP + 1/10th SP)		£'m		£'m		%
Investment		87.8		73.7		19%
Pensions		64.3		55.2		16%
Protection		4.6		4.4		5%
Total		156.7		133.3		18%

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ST. JAMES'S PLACE GROUP

NEW BUSINESS FIGURES

FIRST QUARTER 2011

MANUFACTURED

LONG TERM SAVINGS

		Unaudited 3 Months to 31 March 2011
NEW PREMIUMS		2011		2010		Change
		£'m		£'m		%
New Regular Premiums
- Pensions		18.3		15.1		21%
- Protection		1.3		1.3		-
		19.6		16.4		20%
New Single Premiums
- Investment		506.2		437.3		16%
- Pensions		377.0		340.2		11%
		883.2		777.5		14%
Unit Trust Sales		360.3		295.6		22%
(including PEPs and ISAs)
NEW BUSINESS		2011		2010		Change
(RP + 1/10th SP)		£'m		£'m		%
Investment		86.6		73.3		18%
Pensions		56.0		49.1		14%
Protection		1.3		1.3		-
Total		143.9		123.7		16%
% of total new business		92%		93%

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ST. JAMES'S PLACE GROUP

NEW BUSINESS FIGURES

FIRST QUARTER 2011

NON MANUFACTURED

LONG TERM SAVINGS

·     Investment premiums of £11.9 million (2010: £3.7 million), amounting to £1.2 million (2010: £0.4 million) on an APE basis.

·     Pension single premiums of £32.9 million (2010: £38.2 million) and regular premiums of £5.0 million (2010: £2.3 million), amounting to £8.3 million (2010: £6.1 million) on an APE basis.

·     Protection business of £3.3 million regular premiums (2010: £3.1 million).

·     Total new business, on an APE basis, of £12.8 million (2010: £9.6 million).

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Commentary

During the first quarter of 2011 market conditions for our business have remained positive with economic headlines gradually improving and the corporate sector generally performing well. Investment appetite remains healthy in spite of increased market volatility driven by events in the Middle East and Japan during the period.

Against this backdrop we have seen a continuation of the strong new business growth reported in the final quarter of 2010.

Review of new business

Total new single investments for the quarter at £1.3 billion were up 16% with strong growth across all categories of business. ISA business in particular was very strong recording growth of 28%.

On the APE measure new business for the quarter was up 18% with investment business up 19% and pension business up 16%.

Our manufactured business also performed strongly recording growth in the quarter of 16% and represented 92% of total business.

Funds under management

The continued momentum in new business together with 95% retention of existing client funds, has resulted in funds under management increasing by £1.0 billion during the quarter to £28.0 billion.

The table below provides an analysis of the movement in funds under management for the three months.

	Unaudited
	3 months to 31 March 2011		3 months to 31 March 2010
	£' bn		£' bn
Opening funds under management	27.0		21.4
New money invested	1.3		1.1
Net investment return	0.2		1.2
	28.5		23.7
Regular income withdrawals & maturities	(0.1)		(0.1)
Surrenders & part surrenders	(0.4)		(0.3)
Closing funds under management	28.0		23.3
Annualised surrender rate as a % of average funds under management	5.3%		5.1%

The net asset value per share at 31 March 2011 was around 366 pence.

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Capital

There have been no material changes to group solvency capital during the period.

Outlook

The enduring need for individuals to save for their retirement bodes well for wealth management companies.

Our business model of face to face advice through our own distribution, together with the increasing breadth of our investment proposition leaves us well placed for continued strong growth in the business going forward.

 

END

 

 

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