REG - St. James's Place - Q3 New Business Inflows and Funds Under Management

St James's PlaceAnnouncement

17/10/2024 07:00

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RNS Number : 4751I  St. James's Place PLC  17 October 2024

 

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PRESS RELEASE

 

17 October 2024

 

 SUSTAINED NET INFLOWS AND INVESTMENT RETURNS DRIVE RECORD 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 30 September 2024.

 

Mark FitzPatrick, Chief Executive Officer, commented:

 

"I am pleased to report a strong quarter for the Group, demonstrating the
power of our business model and the value inherent in the long and trusted
relationships our advisers enjoy with clients. We have seen continued momentum
in activity with clients engaging with their advisers to ensure they continue
to take the right course of action for their finances. This activity has
resulted in gross inflows of £4.40 billion in the third quarter, 20% higher
than in Q3 2023.

 

Year-to-date retention(1) remains strong at 94.6% (annualised), driving net
inflows of £0.89 billion for the quarter. The rate of outflows was broadly
consistent with recent periods. Sustained net inflows, together with continued
positive investment performance on behalf of our clients, have resulted in
record funds under management of £184.40 billion at 30 September 2024.

 

We continue to make progress on our cost and efficiency programme, our review
of historic client servicing records and the implementation of our new simple
and comparable charging structure. We are on track to implement the new
charging structure by the second half of 2025, including tiering for both
ongoing product and initial advice charges. Each of these key programmes is
progressing in line with our plans and there is no change to our existing
financial guidance.

 

The macroeconomic environment has improved since the beginning of the year,
but there continues to be uncertainty in the outlook for consumers, savers and
investors. While speculation around the forthcoming Autumn Budget compounds
this, we know that our advisers are providing invaluable advice to our
clients, helping them to navigate the uncertainty and safeguard their
financial futures. With increasing client numbers, sustained net inflows and
growing funds under management, our business is performing well and we are
positioning for further long-term success."

 

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                                                                       Q3 2024     Q3 2023     Q2 2024
                                                                       £'Billion   £'Billion   £'Billion
 Gross inflows                                                         4.40        3.68        4.56
 Net inflows                                                           0.89        0.91        1.20
 Closing funds under management                                        184.40      158.57      181.86

 Year-to-date funds under management retention rate (annualised)(1)    94.6%       95.3%       94.6%
 Year-to-date net inflows/opening funds under management (annualised)  2.2%        3.9%        2.3%

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

 

 

 

Enquiries:

 Hugh Taylor, Director - Investor Relations        Tel: 07818 075143
 Roy Beale, Divisional Director - Media Relations  Tel: 07825 165329

 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

 

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1.     Funds under management

 

 Three months ended 30 September 2024                   Investment  Pension     UT/ISA and DFM  Total
                                                        £'Billion   £'Billion   £'Billion       £'Billion
 Opening FUM                                            37.90       96.26       47.70           181.86
 Gross inflows                                          0.56        2.93        0.91            4.40
 Net investment return                                  0.23        0.94        0.48            1.65
 Regular income withdrawals and maturities              (0.09)      (1.00)      -               (1.09)
 Surrenders and part-surrenders                         (0.55)      (0.87)      (1.00)          (2.42)
 Closing FUM                                            38.05       98.26       48.09           184.40
 Net (outflows)/inflows                                 (0.08)      1.06        (0.09)          0.89
 Implied surrender rate as a percentage of average FUM  5.8%        3.6%        8.4%            5.3%

 

 

 Three months ended 30 September 2023                   Investment    Pension       UT/ISA and    Total

                                                                                     DFM
                                                        £'Billion     £'Billion     £'Billion     £'Billion
 Opening FUM                                            34.36         79.87         43.29         157.52
 Gross inflows                                          0.51          2.42          0.75          3.68
 Net investment return                                  0.14          0.26          (0.26)        0.14
 Regular income withdrawals and maturities              (0.07)        (0.65)        -             (0.72)
 Surrenders and part-surrenders                         (0.51)        (0.59)        (0.95)        (2.05)
 Closing FUM                                            34.43         81.31         42.83         158.57
 Net (outflows)/inflows                                 (0.07)        1.18          (0.20)        0.91
 Implied surrender rate as a percentage of average FUM  5.9%          2.9%          8.8%          5.2%

 

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 Nine months ended 30 September 2024                    Investment    Pension       UT/ISA and    Total

                                                                                     DFM
                                                        £'Billion     £'Billion     £'Billion     £'Billion
 Opening FUM                                            35.99         87.32         44.89         168.20
 Gross inflows                                          1.56          8.52          2.85          12.93
 Net investment return                                  2.47          7.47          3.46          13.40
 Regular income withdrawals and maturities              (0.28)        (2.68)        -             (2.96)
 Surrenders and part-surrenders                         (1.69)        (2.37)        (3.11)        (7.17)
 Closing FUM                                            38.05         98.26         48.09         184.40
 Net (outflows)/inflows                                 (0.41)        3.47          (0.26)        2.80
 Implied surrender rate as a percentage of average FUM  6.1%          3.4%          8.9%          5.4%

 

 

 Nine months ended 30 September 2023                    Investment    Pension       UT/ISA and    Total

                                                                                     DFM
                                                        £'Billion     £'Billion     £'Billion     £'Billion
 Opening FUM                                            33.29         73.86         41.22         148.37
 Gross inflows                                          1.61          7.31          2.80          11.72
 Net investment return                                  1.22          3.36          1.27          5.85
 Regular income withdrawals and maturities              (0.28)        (1.71)        -             (1.99)
 Surrenders and part-surrenders                         (1.41)        (1.51)        (2.46)        (5.38)
 Closing FUM                                            34.43         81.31         42.83         158.57
 Net (outflows)/inflows                                 (0.08)        4.09          0.34          4.35
 Implied surrender rate as a percentage of average FUM  5.6%          2.6%          7.8%          4.7%

 

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2.     Analysis of funds under management

 

The table below provides a geographical and investment-type analysis of FUM at
30 September.

 

                            30 September 2024       30 September 2023
                            £'Billion   Percentage  £'Billion   Percentage

                                        of total                of total
 North American equities    68.4        37%         54.2        34%
 Fixed income securities    30.9        17%         24.5        16%
 European equities          25.8        14%         22.8        14%
 Asia and Pacific equities  23.4        13%         19.6        12%
 UK equities                15.6        8%          15.5        10%
 Cash                       7.2         4%          5.6         4%
 Alternative investments    6.8         4%          11.2        7%
 Other                      4.8         2%          3.3         2%
 Property                   1.5         1%          1.9         1%
 Total                      184.4       100%        158.6       100%

 

 

3.     EEV net asset value per share

 

The net asset value on the European Embedded Value basis at 30 September 2024
was approximately £16.22 per share.

 

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