REG - St. James's Place - Q1 New Business Inflows and Funds Under Management

St James's PlaceAnnouncement

30/04/2024 07:00

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RNS Number : 4871M  St. James's Place PLC  30 April 2024

 

 

 

 

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PRESS RELEASE

 

30 April 2024

 

 INVESTMENT RETURNS AND RESILIENT NET INFLOWS DRIVE GROWTH IN FUNDS UNDER
MANAGEMENT

 

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 2024.

                                                            Q1 2024     Q1 2023     Q4 2023
                                                            £'Billion   £'Billion   £'Billion
 Gross inflows                                              3.97        4.17        3.67
 Net inflows                                                0.71        2.00        0.77
 Closing funds under management                             179.04      153.62      168.20

 Funds under management retention rate (annualised)(1)      94.6%       95.9%       94.8%
 Net inflows / opening funds under management (annualised)  1.7%        5.4%        1.9%

(1) Throughout this press release our retention rate is calculated allowing
for surrenders and part-surrenders. It excludes regular income withdrawals and
maturities.

 

Mark FitzPatrick, Chief Executive Officer, commented:

"I am pleased to report a good first quarter for the year, resulting in client
funds under management (FUM) increasing to £179.0 billion. This has primarily
been driven through a strong period of investment returns, as our investment
proposition continues to deliver for clients. FUM has also benefited from
£0.7 billion of net inflows, further extending our track record of generating
net inflows every quarter.

 

Gross inflows of £4.0 billion were modestly lower year-on-year, in part due
to the fewer number of working days in March this year ahead of the key tax
year end period. For the year to 5 April, gross inflows are broadly unchanged
on the equivalent period in 2023, reflecting an increased level of client
activity, albeit with a lower average investment size. Meanwhile, outflows
remain at an elevated level, continuing a trend we have seen across our
industry, as clients continue to draw upon their savings to meet continued
financial needs.

 

We are making good progress with our review of the business, and I look
forward to sharing the outcomes alongside our half-year results in the summer.
We also continue to move forward with our significant programmes of work to
review historic client servicing records and to implement the new charging
structure that we announced last October. Both programmes are proceeding in
line with our plans and expectations, and the financial guidance associated
with each of these remains unchanged.

 

While the outlook for the macroeconomic environment remains uncertain, our
business is fundamentally in good shape as we continue to build our client
base, grow adviser headcount, increase funds under management, and deliver for
our clients. This means we are very well placed to capture the highly
attractive long-term structural opportunity for the financial advice
industry."

 

The details of the announcement are attached.

 

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Enquiries:

 Hugh Taylor, Director - Investor Relations         Tel: 07818 075143
 Jamie Dunkley, Director - External Communications  Tel: 07779 999651

 Brunswick Group:                                   Tel: 020 7404 5959
 Eilís Murphy                                       Email: sjp@brunswickgroup.com (mailto:sjp@brunswickgroup.com)

 Charles Pretzlik

 

 

 

Contents

 

1.     Funds under management

2.     Analysis of funds under management

3.     EEV net asset value per share

 

 

1.     Funds under management

 

 Three months ended 31 March 2024                       Investment  Pension     UT/ISA and DFM  Total
                                                        £'Billion   £'Billion   £'Billion       £'Billion
 Opening FUM                                            35.99       87.32       44.89           168.20
 Gross inflows                                          0.47        2.61        0.89            3.97
 Net investment return                                  1.92        5.55        2.66            10.13
 Regular income withdrawals and maturities              (0.11)      (0.82)      -               (0.93)
 Surrenders and part-surrenders                         (0.55)      (0.72)      (1.06)          (2.33)
 Closing FUM                                            37.72       93.94       47.38           179.04
 Net inflows/(outflows)                                 (0.19)      1.07        (0.17)          0.71
 Implied surrender rate as a percentage of average FUM  6.0%        3.2%        9.2%            5.4%

 

Included in the table above is:

·      Discretionary Fund Management Group FUM of £3.50 billion at 31
March 2024, gross inflows of £0.06 billion for the quarter and outflows of
£0.05 billion.

·      SJP Asia FUM of £1.76 billion at 31 March 2024, gross inflows of
£0.05 billion for the quarter and outflows of £0.07 billion.

 

 Three months ended 31 March 2023                       Investment  Pension     UT/ISA and DFM  Total
                                                        £'Billion   £'Billion   £'Billion       £'Billion
 Opening FUM                                            33.29       73.86       41.22           148.37
 Gross inflows                                          0.59        2.43        1.15            4.17
 Net investment return                                  0.69        1.74        0.82            3.25
 Regular income withdrawals and maturities              (0.14)      (0.47)      -               (0.61)
 Surrenders and part-surrenders                         (0.43)      (0.41)      (0.72)          (1.56)
 Closing FUM                                            34.00       77.15       42.47           153.62
 Net inflows                                            0.02        1.55        0.43            2.00
 Implied surrender rate as a percentage of average FUM  5.1%        2.2%        6.9%            4.1%

 

Included in the table above is:

·      Discretionary Fund Management Group FUM of £3.35 billion at 31
March 2023, gross inflows of £0.12 billion for the quarter and outflows of
£0.05 billion.

·      SJP Asia FUM of £1.53 billion at 31 March 2023, gross inflows of
£0.04 billion for the quarter and outflows of £0.03 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 2024           31 March 2023
                            £'Billion   Percentage  £'Billion   Percentage

                                        of total                of total
 North American equities    64.9        36%         49.3        32%
 Fixed income securities    28.1        16%         24.0        16%
 European equities          25.3        14%         21.9        14%
 Asia and Pacific equities  21.8        12%         18.9        12%
 UK equities                15.7        9%          16.4        11%
 Alternative investments    9.9         5%          12.4        8%
 Cash                       7.0         4%          5.6         4%
 Other                      4.6         3%          3.0         2%
 Property                   1.7         1%          2.1         1%
 Total                      179.0       100%        153.6       100%

 

 

3.     EEV net asset value per share

 

The net asset value on the European Embedded Value basis at 31 March 2024 was
approximately £15.06 per share (cum div) and approximately £14.98 per share
after the payment of the proposed final dividend on 24 May 2024.

 

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