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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 retention1 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 Charles Pretzlik | Email: sjp@brunswickgroup.com
|
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 DFM | Total |
| £'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 DFM | Total |
| £'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 DFM | Total |
| £'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 of total | £'Billion | Percentage 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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