St. James's Place PLC Q1 New Business Inflows and Funds under Management (1648D)

TIDMSTJ

RNS Number : 1648D

St. James's Place PLC

25 April 2017

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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

25 April 2017

ST. JAMES'S PLACE WEALTH MANAGEMENT

ANOTHER RECORD QUARTER WITH GROSS INFLOWS UP 32%

AND NET INFLOWS UP 46%

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 31 March 2017.

-- Gross inflow of funds under management of GBP3.23 billion (2016: GBP2.45 billion)

-- Continued strong retention of client funds - 95%

-- Net inflow of funds under management of GBP1.99 billion (2016: GBP1.36 billion)

-- Group funds under management of GBP79.84 billion (2016: GBP62.02 billion)

David Bellamy, Chief Executive, commented:

"I am pleased to report another strong quarter of growth. Building on record flows in 2016, total gross inflows for the quarter were 32% higher which, supported by the continued high retention of clients and their investments, resulted in net inflows of GBP1.99 billion for the quarter, taking Group funds under management to a little under GBP80 billion.

At the beginning of the year I said we were better placed for the opportunities that lie ahead than ever before and these gross and net inflow figures reinforce that confidence.

Looking ahead, whilst political and macro uncertainties persist, the more immediate concern for many people relates to personal financial matters, particularly in relation to long term savings, protecting and preserving wealth, tax and intergenerational planning. In this regard, the scale and quality of our relationship-based and advice-led approach to the management of our clients' financial affairs, together with our investment management proposition, means we are increasingly well placed to meet this growing need for trusted advice."

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The details of the announcement are attached.

Enquiries:

 
 David Bellamy, Chief Executive   Tel: [phone] 
  Officer 
 Andrew Croft, Chief Financial    Tel: [phone] 
  Officer 
 Tony Dunk, Investor Relations    Tel: [phone] 
  Director 
 
 Bell Pottinger                   Tel: [phone] 
     John Sunnucks 
     Ben Woodford                 Email: [e-mail] 
 
 

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 

During the first quarter of 2017 gross inflows to our funds under management were up 32% at GBP3.23 billion (2016: GBP2.45 billion) and we continue to experience high retention of existing clients and their investments, such that we are able to report net inflows of GBP1.99 billion (2016: GBP1.36 billion) in the quarter.

 
 Three Months Ended 31 March 2017                          Investment       Pension   UT/ISA & DFM         Total 
                                                          GBP'Billion   GBP'Billion    GBP'Billion   GBP'Billion 
 Opening funds under management                                 25.88         28.25          21.18         75.31 
 Gross inflows                                                   0.58          1.47           1.18          3.23 
 Net investment return                                           0.82          1.17           0.82          2.81 
 Regular income withdrawals and maturities                     (0.14)        (0.23)              -        (0.37) 
 Surrenders and part surrenders                                (0.27)        (0.22)         (0.38)        (0.87) 
 Matching strategy disinvestment                               (0.13)        (0.14)              -        (0.27) 
                                                         ------------  ------------  -------------  ------------ 
 Closing funds under management                                 26.74         30.30          22.80         79.84 
                                                         ============  ============  =============  ============ 
 Net inflows                                                     0.17          1.02           0.80          1.99 
                                                         ------------  ------------  -------------  ------------ 
 Implied surrender rate as a percentage of average 
  funds under management                                         4.1%          3.0%           6.9%          4.5% 
                                                         ------------  ------------  -------------  ------------ 
 

Included within "UT/ISA & DFM" are gross inflows of GBP0.09 billion and outflows of GBP0.02 billion in relation to the Rowan Dartington Group funds under management.

Opening funds under management for investments and pensions include equal and opposite adjustments of GBP0.38 billion related to a reclassification of investment returns arising in the fourth quarter of 2016. There is no impact on total opening funds under management arising from this reclassification.

As disclosed in our 2016 full year results, at year end we reassessed the value of the investment contract unit liability to better reflect experience and to match the encashment value of client investments. As a result, since then we have disinvested GBP267 million of shareholder assets from Group funds under management, reflecting the fact their investment is no longer required for liability matching purposes.

In addition, there is a further GBP526 million of funds under management in third party funds within our Asia business.

 
 Three Months Ended 31 March 2016                          Investment       Pension   UT/ISA & DFM         Total 
                                                          GBP'Billion   GBP'Billion    GBP'Billion   GBP'Billion 
 Opening funds under management                                 22.52         20.86          15.23         58.61 
 Rowan Dartington acquisition                                       -             -           1.26          1.26 
 Gross inflows                                                   0.46          1.18           0.81          2.45 
 Net investment return                                           0.17          0.49           0.13          0.79 
 Regular income withdrawals and maturities                     (0.13)        (0.21)         (0.01)        (0.35) 
 Surrenders and part surrenders                                (0.19)        (0.26)         (0.29)        (0.74) 
                                                         ------------  ------------  -------------  ------------ 
 Closing funds under management                                 22.83         22.06          17.13         62.02 
                                                         ============  ============  =============  ============ 
 Net inflows                                                     0.14          0.71           0.51          1.36 
                                                         ------------  ------------  -------------  ------------ 
 Implied surrender rate as a percentage of average 
  funds under management                                         3.4%          3.7%           6.9%          4.5% 
                                                         ------------  ------------  -------------  ------------ 
 

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Included within "UT/ISA & DFM" are gross inflows of GBP0.04 billion and outflows of GBP0.01 billion in relation to the Rowan Dartington Group funds under management.

In addition, there is a further GBP421 million of funds under management in third party funds within our Asia business.

   2.   Analysis of Funds under Management 

The following table provides an analysis of the funds under management at 31 March 2017 split by geography and asset type:

 
                                       31 March 2017              31 March 2016 
                            GBP'Billion   % of total   GBP'Billion   % of total 
 UK Equities                       18.3          23%          15.4          25% 
 North American Equities           18.3          23%          13.8          22% 
 Fixed Interest                    13.7          17%           9.8          16% 
 European Equities                  9.1          12%           6.4          10% 
 Asia & Pacific Equities            6.6           8%           5.1           8% 
 Cash                               5.9           7%           4.4           7% 
 Property                           2.6           3%           2.3           4% 
 Alternative Investments            2.1           3%           1.4           2% 
 Other                              3.2           4%           3.4           6% 
                           ------------  -----------  ------------  ----------- 
 Total                             79.8         100%          62.0         100% 
                           ============  ===========  ============  =========== 
 

Included within "Other" in the prior period is GBP1.3 billion in relation to Rowan Dartington Group funds under management. The equivalent for 2017 has been allocated to the appropriate asset class.

   3.   Gross Inflow Figures 
 
                                 Unaudited 
                                3 Months to 
                                  31 March 
                                2017          2016 
                         GBP'Billion   GBP'Billion 
 Gross inflows 
 Investment                     0.58          0.46   +26% 
 Pension                        1.47          1.18   +25% 
 Unit Trust/ISA & DFM           1.18          0.81   +46% 
                        ------------  ------------ 
                                3.23          2.45   +32% 
                        ============  ============ 
 
 
   4.   EEV Net Asset Value per Share 

The net asset value on the European Embedded Value basis at 31 March 2017 was approximately 945 pence per share (cum div) and 925 pence per share after the payment of the proposed full year dividend on 12 May 2017.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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