Interim Management Statement

RNS Number : 4952K

St. James's Place PLC

21 April 2010

 



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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

21 April 2010

ST. JAMES'S PLACE WEALTH MANAGEMENT

INTERIM MANAGEMENT STATEMENT

FOR THREE MONTHS TO 31 MARCH 2010

ANOTHER RECORD QUARTER FOR NEW BUSINESS

WITH TOTAL NEW INVESTMENTS OF £1.1 BILLION

St. James's Place plc ("SJP"), the wealth management group, today issues its interim management statement for the three months ended 31 March 2010.

Highlights for the three months are:

New Business

·    Total new single investments of £1,115 million (2009: £711 million) up 57%

·    Combined unit trust and ISA investments of £295.6 million (2009: £160.7 million) up 84%, with ISA business up 102%

·    Total new business on an Annual Premium Equivalent (APE) basis of £133.3 million (2009: £93.8 million) up 42%

Funds under Management

·    Funds under management of £23.3 billion, up 9% for the year to date and 52% over the twelve months

·    Net inflow of funds under management of £700 million

David Bellamy, Chief Executive, commented:

"We're naturally delighted with these new business results. Against an improving market backdrop, we've delivered a very strong all round performance that is a credit to the Partnership and our entire community. It also further demonstrates the effectiveness of our business and the quality of our investment proposition for clients.

We have a great business that is in excellent shape and we remain optimistic about the future."

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 2010

TOTAL

LONG TERM SAVINGS

		Unaudited 3 Months to 31 March 2010
NEW PREMIUMS		2010		2009		Change
		£'m		£'m		%
New Regular Premiums
- Pensions		17.4		18.4		(5%)
- Protection		4.4		4.3		2%
		21.8		22.7		(4%)
New Single Premiums
- Investment		441.0		270.3		63%
- Pensions		378.4		280.1		35%
		819.4		550.4		49%
Unit Trust Sales		295.6		160.7		84%
(including PEPs and ISAs)
NEW BUSINESS		2010		2009		Change
(RP + 1/10th SP)		£'m		£'m		%
Investment		73.7		43.1		71%
Pensions		55.2		46.4		19%
Protection		4.4		4.3		2%
Total		133.3		93.8		42%

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ST. JAMES'S PLACE GROUP

NEW BUSINESS FIGURES

FIRST QUARTER 2010

MANUFACTURED

LONG TERM SAVINGS

		Unaudited 3 Months to 31 March 2010
NEW PREMIUMS		2010		2009		Change
		£'m		£'m		%
New Regular Premiums
- Pensions		15.1		14.0		8%
- Protection		1.3		1.1		18%
		16.4		15.1		9%
New Single Premiums
- Investment		437.3		269.1		63%
- Pensions		340.2		252.3		35%
		777.5		521.4		49%
Unit Trust Sales		295.6		160.7		84%
(including PEPs and ISAs)
NEW BUSINESS		2010		2009		Change
(RP + 1/10th SP)		£'m		£'m		%
Investment		73.3		43.0		70%
Pensions		49.1		39.2		25%
Protection		1.3		1.1		18%
Total		123.7		83.3		48%
% of total new business		93%		89%

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ST. JAMES'S PLACE GROUP

NEW BUSINESS FIGURES

FIRST QUARTER 2010

NON MANUFACTURED

LONG TERM SAVINGS

·    Investment premiums of £3.7 million (2009: £1.2 million), amounting to £0.4 million (2009: £0.1 million) on an APE basis.

·     Pension single premiums of £38.2 million (2009: £27.8 million) and regular premiums of £2.3 million (2009: £4.4 million), amounting to £6.1 million (2009: £7.2 million) on an APE basis.

·     Protection business of £3.1 million regular premiums (2009: £3.2 million).

·     Total new business, on an APE basis, of £9.6 million (2009: £10.5 million).

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Commentary

During the first quarter of 2010 market conditions for our business have remained positive with economic headlines gradually improving and world stock markets continuing to advance.

Against this backdrop we have seen a continuation of the strong new business growth reported in the final quarter of 2009.

Review of new business

Total new single investments for the quarter at £1.1 billion were up 57% with strong growth in all categories of business. ISA business in particular was very strong recording growth of 102%.

On the APE measure new business for the quarter was up 42% with investment business up 71% and pension business up 19%.

Our manufactured business performed even stronger recording growth in the quarter of 48% and represented 93% of total business.

Funds under management

Global stock markets improved during the first quarter of the year with the MSCI £ index for example growing by 9.9%.

These stronger stock markets together with the record quarterly new business and continued 95% retention of existing client funds has resulted in funds under management increasing by £1.9 billion during the quarter to £23.3 billion.

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

	Unaudited
	3 months to 31 March 2010		3 months to 31 March 2009
	£' bn		£' bn
Opening funds under management	21.4		16.3
New money invested	1.1		0.8
Net investment return	1.2		(1.5)
	23.7		15.6
Regular income withdrawals & maturities	(0.1)		(0.1)
Surrenders & part surrenders	(0.3)		(0.2)
Closing funds under management	23.3		15.3
Annualised surrender rate as a % of average funds under management	5.1%		4.5%

The rise in the stock markets has resulted in a positive investment variance within the European Embedded Value basis of reporting.  The net asset value per share at 31 March 2010 was around 306 pence.

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Capital

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

Outlook

Economic indicators have gradually improved and stock markets continue to advance. These positive trends, together with the continued growth in the number of individuals seeking financial advice, provide for a strong environment for our business.

More than ever we believe our business model of face to face advice through our own distribution, The St. James's Place Partnership, gives us a strong competitive advantage.

We have a great business that is in excellent shape and we are optimistic about the future.

 

END

 

 

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