Q4 New Business Inflows and Funds under Management

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 [phone]    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: [phone]
Craig Gentle, Chief Financial Officer	Tel: [phone]
Tony Dunk, Investor Relations Director	Tel: [phone]
Brunswick Group	Tel: [phone]
Charles Pretzlik	Email: [e-mail]
Tom Burns	Email: [e-mail]

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).

 

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