Q3 New Business Inflows and Funds under Management

RNS Number : 6155Q
St. James's Place PLC
22 October 2019
 

 

-1-

 

ST. JAMES'S PLACE plc

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

Telephone 020 7493 8111

 

PRESS RELEASE

22 October 2019

 

ST. JAMES'S PLACE WEALTH MANAGEMENT

 

CONTINUED STRONG NET INFLOWS DRIVE FUNDS UNDER

MANAGEMENT TO A RECORD £112.8 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 three months ended 30 September 2019.

 


Q3 2019

Q3 2018


£'Billion

£'Billion




Gross inflows

3.74

3.83

Net inflows

2.11

2.47

Closing Funds under Management

112.82

100.59




Funds under management retention rate (annualised)

96.0%

96.2%

Net inflows/opening funds under management (annualised)

7.7%

10.2%

 

Andrew Croft, Chief Executive, commented:

 

"I am pleased to report another good quarter for St. James's Place. In the three months to the end of September, new and existing clients entrusted us with £3.74 billion of new funds. Through the excellent work of our Partners and their staff in building and maintaining close relationships with clients, we are also able to report continued strong retention, resulting in net inflows for the quarter of £2.11 billion, equivalent to 7.7% of opening funds under management on an annualised basis. These positive inflows helped increase funds under management to a record £112.8 billion, some 18% higher year to-date. In what remains an uncertain external environment, these figures once again highlight the resilience of our business model and the outstanding role our Partners and support staff play in providing for trusted, long-term financial advice to our clients.

 

While political and macro-economic uncertainty may affect the pace of some discretionary investment flows from time to time, it has no bearing on the continuing need for holistic, long-term financial planning. Indeed, we see demand for sound, personal and trusted financial advice growing while at the same time the 'advice gap' remains.

 

I take great pride in the scale and professionalism of the St. James's Place Partnership and I am confident that our comprehensive and distinct client proposition, which is highly valued by our clients, means we are well positioned to continue to grow over the medium to long-term."

 

 

 

The details of the announcement are attached.

 

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Enquiries:

 

Andrew Croft, Chief Executive Officer

Tel: 020 7514 1963

Craig Gentle, Chief Financial Officer

Tel: 020 7514 1963

Tony Dunk, Investor Relations Director

Tel: 020 7514 1963

Jamie Dunkley, External Communications Director

Tel: 020 7514 1963

 

Brunswick Group: Tom Burns/Eilis Murphy

 

Tel: 020 7404 5959


Email: sjp@brunswickgroup.com



 

 

 

Contents

 

1.   Funds under Management

2.   Analysis of Funds under Management

3.   Gross Inflow Figures

4.   EEV Net Asset Value per Share

 

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1.   Funds under Management

 

Three Months Ended 30 September 2019

Investment


Pension


UT/ISA & DFM


Total


£'Billion


£'Billion


£'Billion


£'Billion

Opening funds under management

30.08 


48.16 


31.08 


109.32 

Gross inflows

0.58 


2.17 


0.99 


3.74 

Net investment return

0.36 


0.72 


0.31 


1.39 

Regular income withdrawals and maturities

(0.16)


(0.35)



(0.51)

Surrenders and part surrenders

(0.26)


(0.34)


(0.52)


(1.12)

Closing funds under management

30.60 


50.36 


31.86 


112.82 

Net inflows

0.16 


1.48 


0.47 


2.11 

Implied surrender rate as a percentage of average funds under management

3.4%


2.8%


6.6%


4.0%

 

Included within "UT/ISA & DFM" are closing funds under management of £2.80 billion and within the quarter, gross inflows of £0.14 billion and outflows of £0.03 billion in relation to the Rowan Dartington Group funds under management.

 

Not included within Group funds under management is a further £442 million of funds under management in third party funds within our Asia business.

 

Three Months Ended 30 September 2018

Investment


Pension


UT/ISA & DFM


Total


£'Billion


£'Billion


£'Billion


£'Billion

Opening funds under management

28.89 


39.84 


27.88 


96.61 

Gross inflows

0.55 


2.23 


1.05 


3.83 

Net investment return

0.37 


0.85 


0.29 


1.51 

Regular income withdrawals and maturities

(0.12)


(0.30)



(0.42)

Surrenders and part surrenders

(0.24)


(0.27)


(0.43)


(0.94)

Closing funds under management

29.45 


42.35 


28.79 


100.59 

Net inflows

0.19 


1.66 


0.62 


2.47 

Implied surrender rate as a percentage of average funds under management

3.3%


2.6%


6.1%


3.8%

 

Included within "UT/ISA & DFM" are closing funds under management of £2.42 billion and within the quarter, gross inflows of £0.14 billion and outflows of £0.03 billion in relation to the Rowan Dartington Group funds under management.

 

Not included within Group funds under management is a further £438 million of funds under management in third party funds within our Asia business.

 

-4-

 

Nine Months Ended 30 September 2019

Investment


Pension


UT/ISA & DFM


Total


£'Billion


£'Billion


£'Billion


£'Billion

Opening funds under management

27.62 


40.72 


27.21 


95.55 

Gross inflows

1.65 


6.31 


3.16 


11.12 

Net investment return

2.56 


5.20 


2.96 


10.72 

Regular income withdrawals and maturities

(0.43)


(0.96)


(0.02)


(1.41)

Surrenders and part surrenders

(0.80)


(0.91)


(1.45)


(3.16)

Closing funds under management

30.60 


50.36 


31.86 


112.82 

Net inflows

0.42 


4.44 


1.69 


6.55 

Implied surrender rate as a percentage of average funds under management

3.7%


2.7%


6.6%


4.1%

 

Included within "UT/ISA & DFM" are closing funds under management of £2.80 billion, gross inflows of £0.44 billion and outflows of £0.11 billion in relation to the Rowan Dartington Group funds under management.

 

Nine Months Ended 30 September 2018

Investment


Pension


UT/ISA & DFM


Total


£'Billion


£'Billion


£'Billion


£'Billion

Opening funds under management

28.31 


36.15 


26.29 


90.75 

Gross inflows

1.76 


6.59 


3.40 


11.75 

Net investment return

0.49 


1.31 


0.36 


2.16 

Regular income withdrawals and maturities

(0.37)


(0.89)



(1.26)

Surrenders and part surrenders

(0.74)


(0.81)


(1.26)


(2.81)

Closing funds under management

29.45 


42.35 


28.79 


100.59 

Net inflows

0.65 


4.89 


2.14 


7.68 

Implied surrender rate as a percentage of average funds under management

3.4%


2.8%


6.1%


3.9%

 

Included within "UT/ISA & DFM" are closing funds under management of £2.42 billion, gross inflows of £0.41 billion and outflows of £0.08 billion in relation to the Rowan Dartington Group funds under management.

 

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2.   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:

 


30 September 2019


30 September 2018 (1)


£'Billion


% of total


£'Billion


% of total

North American Equities

24.4


22%


21.0


21%

Fixed Interest

20.5


18%


17.9


18%

UK Equities

19.3


17%


18.6


19%

European Equities

13.4


12%


10.5


10%

Asia & Pacific Equities

12.8


11%


10.6


10%

Alternative Investments

9.1


8%


7.6


8%

Cash

6.8


6%


7.0


7%

Property

3.0


3%


3.1


3%

Other

3.5


3%


4.3


4%

Total

112.8


100%


100.6


100%

 

(1)   The geographical and investment type analysis of FUM for 30 September 2018 has been restated to better reflect the nature of the underlying investment types.

 

 

3.   Gross Inflow Figures

 


Unaudited

3 Months to

30 September



Unaudited

9 Months to

30 September



2019

2018



2019

2018



£'Billion

£'Billion



£'Billion

£'Billion


Gross inflows








Investment

0.58

0.55



1.65

1.76


Pension

2.17

2.23



6.31

6.59


Unit Trust and ISA

0.99

1.05



3.16

3.40



3.74

3.83

-2%


11.12

11.75

-5%

 

 

4.   EEV Net Asset Value per Share

 

The net asset value on the European Embedded Value basis at 30 September 2019 was approximately 1,260 pence per share after the payment of the 18.49 pence per share interim dividend on 27 September 2019.

 


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