Interim Management Statement

RNS Number : 3972V

St. James's Place PLC

02 November 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

2 November 2010

ST. JAMES'S PLACE WEALTH MANAGEMENT

INTERIM MANAGEMENT STATEMENT

FOR THREE MONTHS TO 30 SEPTEMBER 2010

TOTAL NEW INVESTMENTS OF £1.1 BILLION UP 32%

St. James's Place plc ("SJP"), the wealth management group, today issues its interim management statement for the three months ended 30 September 2010.

Highlights for the three months are:

New Business

·     Total single investments of £1.1 billion (2009: £0.8 billion), up 32%

·     Total new business on an APE basis of £136.5 million (2009: £104.6 million), up 30%

·     Our own business represents 89% of the total

Funds Under Management

·     Net inflow of funds under management of £700 million (2009: £600 million)

·     Continue to retain 95% of existing clients' funds

·     Funds under management of £24.8 billion, up £2.4 billion over the three months

David Bellamy, Chief Executive, commented:

"We are delighted with the continued momentum in new business and investment inflows during the quarter, which is attributable to the increasing breadth of our investment offering and the strength of our distribution.

This performance, together with the recovery in world stock markets, has given rise to strong growth in funds under management to £24.8 billion. Funds under management have now doubled over the last five years.

Although the outlook was uncertain earlier in the year, 2010 is proving to be a very successful year for St. James's Place. While we are up against tougher comparatives in the short term we remain confident in our ability to deliver average new business growth within our 15-20% per annum range over the medium term."

The details of the announcement are attached.

Enquiries:

David Bellamy,  Chief Executive	Tel:	020 7514 1963
Andrew Croft,  Group Finance Director	Tel:	020 7514 1963
Tulchan Communications Group Ltd    John Sunnucks/Mal Patel	Tel:	020 7353 4200

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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES TO 30 SEPTEMBER 2010

TOTAL LONG TERM SAVINGS

	Unaudited 3 Months to 30 September 2010								Unaudited 9 Months to 30 September 2010
New PREMIUMS		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
New Regular Premiums
- Pensions		20.7		15.8		31%				64.8		56.0		16%
- Protection		5.3		5.3		-				14.7		14.2		4%
		26.0		21.1		23%				79.5		70.2		13%
New Single Premiums
- Investment		474.7		353.5		34%				1,423.4		934.1		52%
- Pensions		370.2		280.1		32%				1,120.0		829.9		35%
		844.9		633.6		33%				2,543.4		1,764.0		44%
Unit Trust Sales (including PEPs and ISAs)		259.6		201.2		29%				952.3		609.5		56%
	Unaudited 3 Months to 30 September 2010								Unaudited 9 Months to 30 September 2010
		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
NEW BUSINESS (RP + 1/10TH SP)
Investment		73.5		55.5		32%				237.6		154.4		54%
Pensions		57.7		43.8		32%				176.8		139.0		27%
Protection		5.3		5.3		-				14.7		14.2		4%
Total		136.5		104.6		30%				429.1		307.6		40%

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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES TO 30 SEPTEMBER 2010

MANUFACTURED LONG TERM SAVINGS

	Unaudited 3 Months to 30 September 2010								Unaudited 9 Months to 30 September 2010
New PREMIUMS		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
New Regular Premiums
- Pensions		15.5		14.4		8%				50.3		46.7		8%
- Protection		1.3		1.3		-				3.7		3.5		6%
		16.8		15.7		7%				54.0		50.2		8%
New Single Premiums
- Investment		458.4		345.6		33%				1,387.5		920.2		51%
- Pensions		335.1		252.5		33%				1,012.0		741.8		36%
		793.5		598.1		33%				2,399.5		1,662.0		44%
Unit Trust Sales (including PEPs and ISAs)		259.6		201.2		29%				952.3		609.5		56%
	Unaudited 3 Months to 30 September 2010								Unaudited 9 Months to 30 September 2010
		2010 £'m		2009 £'m		Change %				2010 £'m		2009 £'m		Change %
NEW BUSINESS (RP + 1/10TH SP)
Investment		71.8		54.7		31%				234.0		153.0		53%
Pensions		49.0		39.7		23%				151.5		120.9		25%
Protection		1.3		1.3		-				3.7		3.5		6%
Total		122.1		95.7		28%				389.2		277.4		40%

% of total new business

89%

91%

91%

90%

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ST. JAMES'S PLACE WEALTH MANAGEMENT

NEW BUSINESS FIGURES TO 30 SEPTEMBER 2010

NON MANUFACTURED LONG TERM SAVINGS

For the three months:

·     Investment premiums of £16.3 million (2009: £8.0 million), amounting to £1.6 million (2009: £0.8 million) on an APE basis.

·     Pension single premiums of £35.1 million (2009: £27.6 million) and regular premiums of £5.2 million (2009: £1.4 million), amounting to £8.7 million (2009: £4.1 million) on an APE basis.

·     Protection business of £4.0 million regular premiums (2009: £4.0 million).

·     Total new business, on an APE basis, of £14.3 million (2009: £8.9 million).

For the nine months:

·     Investment premiums of £35.9 million (2009: £14.0 million), amounting to £3.6 million (2009: £1.4 million) on an APE basis.

·     Pension single premiums of £108.0 million (2009: £88.1 million) and regular premiums of £14.5 million (2009: £9.3 million), amounting to £25.3 million (2009: £18.1 million) on an APE basis.

·     Protection business of £11.0 million regular premiums (2009: £10.7 million).

·     Total new business, on an APE basis, of £39.9 million (2009: £30.2 million).

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Commentary

During the third quarter of 2010, despite continuing economic headwinds, there was a welcome recovery in world stock markets.

In the three months we have continued to experience strong new business growth which combined with the continuing excellent retention of existing business resulted in a strong net inflow of funds under management for the quarter.

Review of new business

Total new business for the three months, on the APE measure, was up 30% at £136.5 million whilst the manufactured business, which represented 89% of the business, was up 28% to £122.1 million.

Total single investments increased by 32% during the third quarter to £1,104.5 million, with strong growth in all categories of business.

Total regular premium business increased during the quarter by 23%, as a result of a 31% increase in pensions business regular premiums.

Funds under management

The growth in stock markets combined with net inflows of £700 million during the quarter has led to funds under management at 30 September of £24.8 billion - an increase of £2.4 billion and up 11% during the quarter.

We are continuing to develop our range of funds and have recently launched a new income fund managed by Artemis Investment Management and appointed Artisan Partners as the replacement manager for one of our managed funds.

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 2010		Unaudited 9 Months to 30 September 2009
		£'bn		£'bn
Opening funds under management		21.4		16.3
New money invested		3.5		2.4
Net investment return		1.2		2.4
		26.1		21.1
Regular income withdrawals & maturities		(0.4)		(0.3)
Surrenders & part surrenders		(0.9)		(0.5)
Closing funds under management		24.8		20.3
Annualised surrender rate as a % of average funds under management		5.2%		3.9%

The rise in stock markets during the third quarter has resulted in a positive investment variance in the three months.  The net asset value per share at 30 September 2010 on a European Embedded Value basis was around 320 pence.

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Capital

There have been no material changes to solvency capital during the third quarter.

Outlook

Although the outlook was uncertain earlier in the year, 2010 is proving to be a very successful year for St. James's Place. While we are up against tougher comparatives in the short term we remain confident in our ability to deliver average new business growth within our 15-20% per annum range over the medium term.

 

END

 

 

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