St. James's Place PLC Q1 New Business Inflows and Funds Under Management (5777J)

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RNS Number : 5777J

St. James's Place PLC

28 April 2022

-1-

PRESS RELEASE

28 April 2022

ST. JAMES'S PLACE REPORTS RECORD NET INFLOWS IN THE FIRST QUARTER

St. James ' s Place plc ('SJP') today issues an update on new business inflows and funds under management for the three months ended 31 March 2022.

 
                                                             Q1 2022      Q1 2021 
                                                         -----------  ----------- 
                                                         GBP'Billion  GBP'Billion 
-------------------------------------------------------  -----------  ----------- 
Gross inflows                                                   4.73           4.79 
Net inflows                                                     2.91           2.90 
Closing funds under management                                151.25         135.46 
 
Funds under management retention rate (full year)              96.6%          95.8% 
Net inflows/opening funds under management (full year)          7.6%           9.0% 
-------------------------------------------------------  -----------  ------------- 
 

Andrew Croft, Chief Executive Officer, commented:

" I am pleased to report another strong quarter for St. James's Place that maintains the momentum developed during 2021. Whilst the landscape was significantly impacted by the tragic events in Ukraine since February, we continued to see high levels of activity throughout the period as advisers and clients sought ways of mitigating the risks posed to long-term financial planning by higher inflation and macroeconomic and geopolitical uncertainty. This highlights the ongoing resilience of our business model.

Our gross and net inflows of GBP4.73 billion and GBP2.91 billion respectively were broadly in line with the first quarter of 2021, which was an exceptionally strong period for gross inflows as sentiment improved markedly following the start of the COVID-19 vaccine rollout in the UK. Retention of client investments continued to hold at a very strong level and this, coupled with our strong inflows, resulted in annualised net inflows as a percentage of opening funds under management of 7.6% (2021: 9.0%). This was moderated by negative investment market returns in the period, which took funds under management to GBP151.25 billion at 31 March 2022.

Our results for the first quarter of 2022 are a credit to everyone in the SJP community and in particular to the Partnership who provide much needed support for clients seeking to navigate the impact that complexity and uncertainty can have on their long-term financial well-being. Our performance so far this year means that we remain comfortable with consensus expectations for new business growth in 2022 and are confident of delivering on the broader ambitions of our 2025 plan."

The details of the announcement are attached.

Enquiries:

 
 Hugh Taylor, Director - Investor Relations        Tel: [phone] 
 Jamie Dunkley, External Communications Director   Tel: [phone] 
 
   Brunswick Group:                                  Tel: [phone] 
 Charles Pretzlik                                  Email: [e-mail] 
  Eilis Murphy                                      Email: [e-mail] 
 

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Contents

   1.     Funds under management 
   2.     Analysis of funds under management 
   3.     EEV net asset value per share 
   1.     Funds under management 
 
                                                         Investment      Pension  UT/ISA and DFM        Total 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Three months ended 31 March 2022                        GBP'Billion  GBP'Billion     GBP'Billion  GBP'Billion 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Opening FUM                                                   35.95        74.83           43.21       153.99 
Gross inflows                                                  0.63         2.53            1.57         4.73 
Net investment return                                        (1.15)       (2.80)          (1.70)       (5.65) 
Regular income withdrawals and maturities                    (0.08)       (0.42)               -       (0.50) 
Surrenders and part-surrenders                               (0.38)       (0.39)          (0.55)       (1.32) 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Closing FUM                                                   34.97        73.75           42.53       151.25 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Net inflows                                                    0.17         1.72            1.02         2.91 
Implied surrender rate as a percentage of average FUM          4.4%         2.0%            5.1%         3.4% 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
 

Included in the table above is:

-- Rowan Dartington Group FUM of GBP3.42 billion at 31 March 2022, gross inflows of GBP0.13 billion for the quarter and outflows of GBP0.04 billion.

-- SJP Asia FUM of GBP1.56 billion at 31 March 2022, gross inflows of GBP0.08 billion for the quarter and outflows of GBP0.02 billion.

 
                                                         Investment      Pension  UT/ISA and DFM        Total 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Three months ended 31 March 2021                        GBP'Billion  GBP'Billion     GBP'Billion  GBP'Billion 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Opening FUM                                                   32.22        61.31           35.81       129.34 
Gross inflows                                                  0.58         2.69            1.52         4.79 
Net investment return                                          0.80         1.52            0.90         3.22 
Regular income withdrawals and maturities                    (0.08)       (0.41)               -       (0.49) 
Surrenders and part-surrenders                               (0.42)       (0.36)          (0.62)       (1.40) 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Closing FUM                                                   33.10        64.75           37.61       135.46 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
Net inflows                                                    0.08         1.92            0.90         2.90 
Implied surrender rate as a percentage of average FUM          5.1%         2.3%            6.8%         4.2% 
------------------------------------------------------  -----------  -----------  --------------  ----------- 
 

Included in the table above is:

-- Rowan Dartington Group FUM of GBP2.98 billion at 31 March 2021, gross inflows of GBP0.13 billion for the quarter and outflows of GBP0.05 billion.

-- SJP Asia FUM of GBP1.28 billion at 31 March 2021, gross inflows of GBP0.10 billion for the quarter and outflows of GBP0.02 billion.

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   2.     Analysis of funds under management 

The table below provides a geographical and investment-type analysis of FUM at 31 March.

 
                                 31 March 2022            31 March 2021 
--------------------------  -----------------------  ----------------------- 
                                         Percentage               Percentage 
                            GBP'Billion    of total  GBP'Billion    of total 
--------------------------  -----------  ----------  -----------  ---------- 
North American equities            45.9         30%         36.1         27% 
Fixed income securities            25.2         17%         22.4         17% 
UK equities                        20.5         13%         19.2         14% 
European equities                  19.7         13%         14.8         11% 
Asia and Pacific equities          17.2         11%         20.1         15% 
Alternative investments            11.8          8%         10.9          8% 
Cash                                5.5          4%          6.5          5% 
Property                            2.7          2%          2.4          2% 
Other                               2.8          2%          3.1          1% 
--------------------------  -----------  ----------  -----------  ---------- 
Total                             151.3        100%        135.5        100% 
--------------------------  -----------  ----------  -----------  ---------- 
 
   3.     EEV net asset value per share 

The net asset value on the European Embedded Value basis at 31 March 2022 was approximately GBP16.35 per share (cum div) and approximately GBP15.95 per share after the payment of the proposed full year dividend on 27 May 2022.

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April 28, 2022 02:00 ET (06:00 GMT)