-1-
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
Charles Pretzlik
|
Email: sjp@brunswickgroup.com
|
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
of
total
|
£'Billion
|
Percentage
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.