21st Apr 2010 07:00
-1-
ST. JAMES'S PLACE plc
27 St. James's Place, London SW1A 1NR
Telephone 020 7493 8111 Facsimile 020 7493 2382
PRESS RELEASE
21 April 2010
ST. JAMES'S PLACE WEALTH MANAGEMENT
INTERIM MANAGEMENT STATEMENT
FOR THREE MONTHS TO 31 MARCH 2010
ANOTHER RECORD QUARTER FOR NEW BUSINESS
WITH TOTAL NEW INVESTMENTS OF £1.1 BILLION
St. James's Place plc ("SJP"), the wealth management group, today issues its interim management statement for the three months ended 31 March 2010.
Highlights for the three months are:
New Business
·; Total new single investments of £1,115 million (2009: £711 million) up 57%
·; Combined unit trust and ISA investments of £295.6 million (2009: £160.7 million) up 84%, with ISA business up 102%
·; Total new business on an Annual Premium Equivalent (APE) basis of £133.3 million (2009: £93.8 million) up 42%
Funds under Management
·; Funds under management of £23.3 billion, up 9% for the year to date and 52% over the twelve months
·; Net inflow of funds under management of £700 million
David Bellamy, Chief Executive, commented:
"We're naturally delighted with these new business results. Against an improving market backdrop, we've delivered a very strong all round performance that is a credit to the Partnership and our entire community. It also further demonstrates the effectiveness of our business and the quality of our investment proposition for clients.
We have a great business that is in excellent shape and we remain optimistic about the future."
The details of the announcement are attached.
Enquiries:
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David Bellamy, Chief Executive |
Tel: 020 7514 1963 |
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Andrew Croft, Group Finance Director |
Tel: 020 7514 1963 |
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Tulchan Communications Group Ltd |
Tel: 020 7353 4200 |
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John Sunnucks / Mal Patel |
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-2-
ST. JAMES'S PLACE GROUP
NEW BUSINESS FIGURES
FIRST QUARTER 2010
TOTAL
LONG TERM SAVINGS
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Unaudited 3 Months to 31 March 2010 |
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NEW PREMIUMS |
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2010 |
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2009 |
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Change |
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£'m |
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£'m |
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% |
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New Regular Premiums |
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- Pensions |
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17.4 |
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18.4 |
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(5%) |
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- Protection |
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4.4 |
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4.3 |
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2% |
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21.8 |
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22.7 |
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(4%) |
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New Single Premiums |
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- Investment |
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441.0 |
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270.3 |
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63% |
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- Pensions |
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378.4 |
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280.1 |
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35% |
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819.4 |
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550.4 |
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49% |
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Unit Trust Sales |
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295.6 |
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160.7 |
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84% |
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(including PEPs and ISAs) |
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NEW BUSINESS |
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2010 |
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2009 |
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Change |
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(RP + 1/10th SP) |
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£'m |
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£'m |
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% |
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Investment |
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73.7 |
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43.1 |
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71% |
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Pensions |
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55.2 |
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46.4 |
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19% |
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Protection |
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4.4 |
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4.3 |
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2% |
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Total |
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133.3 |
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93.8 |
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42% |
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-3-
ST. JAMES'S PLACE GROUP
NEW BUSINESS FIGURES
FIRST QUARTER 2010
MANUFACTURED
LONG TERM SAVINGS
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Unaudited 3 Months to 31 March 2010 |
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NEW PREMIUMS |
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2010 |
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2009 |
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Change |
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£'m |
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£'m |
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% |
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New Regular Premiums |
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- Pensions |
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15.1 |
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14.0 |
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8% |
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- Protection |
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1.3 |
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1.1 |
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18% |
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16.4 |
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15.1 |
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9% |
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New Single Premiums |
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- Investment |
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437.3 |
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269.1 |
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63% |
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- Pensions |
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340.2 |
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252.3 |
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35% |
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777.5 |
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521.4 |
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49% |
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Unit Trust Sales |
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295.6 |
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160.7 |
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84% |
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(including PEPs and ISAs) |
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NEW BUSINESS |
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2010 |
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2009 |
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Change |
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(RP + 1/10th SP) |
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£'m |
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£'m |
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% |
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Investment |
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73.3 |
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43.0 |
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70% |
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Pensions |
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49.1 |
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39.2 |
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25% |
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Protection |
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1.3 |
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1.1 |
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18% |
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Total |
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123.7 |
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83.3 |
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48% |
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% of total new business |
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93% |
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89% |
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-4-
ST. JAMES'S PLACE GROUP
NEW BUSINESS FIGURES
FIRST QUARTER 2010
NON MANUFACTURED
LONG TERM SAVINGS
·; Investment premiums of £3.7 million (2009: £1.2 million), amounting to £0.4 million (2009: £0.1 million) on an APE basis.
·; Pension single premiums of £38.2 million (2009: £27.8 million) and regular premiums of £2.3 million (2009: £4.4 million), amounting to £6.1 million (2009: £7.2 million) on an APE basis.
·; Protection business of £3.1 million regular premiums (2009: £3.2 million).
·; Total new business, on an APE basis, of £9.6 million (2009: £10.5 million).
-5-
Commentary
During the first quarter of 2010 market conditions for our business have remained positive with economic headlines gradually improving and world stock markets continuing to advance.
Against this backdrop we have seen a continuation of the strong new business growth reported in the final quarter of 2009.
Review of new business
Total new single investments for the quarter at £1.1 billion were up 57% with strong growth in all categories of business. ISA business in particular was very strong recording growth of 102%.
On the APE measure new business for the quarter was up 42% with investment business up 71% and pension business up 19%.
Our manufactured business performed even stronger recording growth in the quarter of 48% and represented 93% of total business.
Funds under management
Global stock markets improved during the first quarter of the year with the MSCI £ index for example growing by 9.9%.
These stronger stock markets together with the record quarterly new business and continued 95% retention of existing client funds has resulted in funds under management increasing by £1.9 billion during the quarter to £23.3 billion.
The table below provides an analysis of the movement in funds under management for the three months.
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Unaudited |
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3 months to 31 March 2010 |
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3 months to 31 March 2009 |
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£' bn |
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£' bn |
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Opening funds under management |
21.4 |
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16.3 |
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New money invested |
1.1 |
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0.8 |
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Net investment return |
1.2 |
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(1.5) |
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23.7 |
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15.6 |
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Regular income withdrawals & maturities |
(0.1) |
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(0.1) |
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Surrenders & part surrenders |
(0.3) |
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(0.2) |
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Closing funds under management |
23.3 |
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15.3 |
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Annualised surrender rate as a % of average funds under management |
5.1% |
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4.5% |
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The rise in the stock markets has resulted in a positive investment variance within the European Embedded Value basis of reporting. The net asset value per share at 31 March 2010 was around 306 pence.
-6-
Capital
There have been no material changes to group solvency capital during the period.
Outlook
Economic indicators have gradually improved and stock markets continue to advance. These positive trends, together with the continued growth in the number of individuals seeking financial advice, provide for a strong environment for our business.
More than ever we believe our business model of face to face advice through our own distribution, The St. James's Place Partnership, gives us a strong competitive advantage.
We have a great business that is in excellent shape and we are optimistic about the future.
Related Shares:
St James's Place