Q1 New Business Inflows and Funds Under Management
Updated : 07:00
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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 |
| |
£'Billion | £'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 £4.73 billion and £2.91 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 £151.25 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: 07818 075143 |
Jamie Dunkley, External Communications Director | Tel: 07779 999651 |
Brunswick Group: |
Tel: 020 7404 5959 |
Charles Pretzlik Eilis Murphy | Email: cpretzilk@brunswickgroup.com Email: emurphy@brunswickgroup.com |
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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
Three months ended 31 March 2022 | Investment | Pension | UT/ISA and DFM | Total |
£'Billion | £'Billion | £'Billion | £'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 £3.42 billion at 31 March 2022, gross inflows of £0.13 billion for the quarter and outflows of £0.04 billion.
· SJP Asia FUM of £1.56 billion at 31 March 2022, gross inflows of £0.08 billion for the quarter and outflows of £0.02 billion.
Three months ended 31 March 2021 | Investment | Pension | UT/ISA and DFM | Total |
£'Billion | £'Billion | £'Billion | £'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 £2.98 billion at 31 March 2021, gross inflows of £0.13 billion for the quarter and outflows of £0.05 billion.
· SJP Asia FUM of £1.28 billion at 31 March 2021, gross inflows of £0.10 billion for the quarter and outflows of £0.02 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 | ||
£'Billion | Percentage of total | £'Billion | Percentage 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 £16.35 per share (cum div) and approximately £15.95 per share after the payment of the proposed full year dividend on 27 May 2022.
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