St. James's Place Plc · LSE:STJ
St. James's Place — Investor Presentation (April 2013)
92 slides from St. James's Place's investor presentation, Apr 26, 2013
Slide 1: St. James's Place Wealth Management April 2013
ST. JAMES’S PLACE WEALTH MANAGEMENT APRIL 2013 SJP Wealth Management Presentation (First Quarter) - 2013.indd 1 26/04/2013 14:07:44
Slide 2: Contents
Contents First quarter IMS 3 Review of 2012 9 Cash & Dividends Profile 22 Strategy 30 The Partnership 41 Investment Management 48 Appendices 62 Our clients 70 Our market 76 2 SJP Wealth Management Presentation (First Quarter) - 2013.indd 2 26/04/2013 14:07:55
Slide 3: First quarter IMS: Highlights
First quarter IMS: Highlights New business • Total single investments of £1.6 billion – up 28% • Pension single investments of £581 million – up 11% and pension APE up 20% • Total new business on an APE basis of £199.2 million – up 31% Funds under management • Net inflow of funds under management of
Slide 4: Total new business by quarter
Total new business by quarter APE (Annual premiums plus 10% of single premiums) 223.8 £m 220 199.2 201.3 200 178.9 180 165.6 159.3 2010 160 156.7 152.6 153.9 152.7 152.8 2011 140 136.5 133.3 2012 120 2013 100 80 60 Q1 Q2 Q3 Q4 2010 over 2009 +42% +46% +30% +15% 2011 over 2010 +18% +12% +13% +0% 2012
Slide 5: Single investments by quarter
Single investments by quarter 1787.2 £m 1800 1601.4 1600 1445.1 1501.1 1400 1288.3 1276.2 1263.4 1331.2 1255.7 1253.1 1206.0 1200 1115.0 1104.5 2010 1000 2011 800 2012 600 2013 400 200 0 Q1 Q2 Q3 Q4 2010 over 2009 +57% +54% +32% +16% 2011 over 2010 +16% +13% +14% -4% 2012 over 2011 -3% +4% +5% +48%
Slide 6: Pensions: single investments by quarter
Pensions: single investments by quarter £m 750 729.5 700 650 580.9 600 558.5 556.9 550 521.6 495.8 500 479.6 474.5 450 410.0 417.2 2010 400 378.4 371.4 370.2 2011 350 300 2012 250 2013 200 150 100 50 0 Q1 Q2 Q3 Q4 2010 over 2009 +35% +38% +32% +20% 2011 over 2010 +8% +29% +28% +19% 2012 over 2011 +2
Slide 7: Pensions: regular investments by quarter
Pensions: regular investments by quarter £m 45 43.9 40 35 34.1 35 30.6 30.2 30 26.7 26.3 2010 25 23.3 22.1 22.4 23.2 22.1 2011 20.7 20 17.4 2012 15 2013 10 5 0 Q1 Q2 Q3 Q4 2010 over 2009 -5% +22% +31% +14% 2011 over 2010 +34% +13% +8% +19% 2012 over 2011 -5% +45% +4% +30% 2013 over 2012 +38% 7 SJP W
Slide 8: Fund flow information
Fund flow information 3 months to 3 months to £ billion 31 March 2013 31 March 2012 FUM at start 34.8 28.5 New money invested 1.6 1.3 Investment return 3.3 1.8 39.7 31.6 Regular income withdrawals/maturities (0.2) (0.2) Surrenders/part surrenders (0.5) (0.4) FUM at close 39.0 31.0 Implied surrender
Slide 9: Review of 2012
Review of 2012 9 SJP Wealth Management Presentation (First Quarter) - 2013.indd 9 26/04/2013 14:09:05
Slide 10: New business and funds under management 2012
New business • Total single investments of £5.88 billion – up 13% • Total new business on an APE basis of £743.3 million – up 16% • Our own business represents 86% of the total Funds under management • Net inflow of funds under management of £3.3 billion – up 4% • Continue to retain 95% year on year
Slide 11: Partnership, profits and other financials
Partnership • Partnership numbers 1,788 - up 8% Profits • EEV new business profit £276.8 million – up 13% • EEV operating profit £365.9 million – down 2% • IFRS operating profit £134.6 million – up 23% Other financials • EEV net asset value of 461 pence per share – up 20% • Underlying cash result of
Slide 12: Record single investments
Record single investments 6 +13% +10% 5.88bn 5 +37% 4 +11% £ billion 3 2 1 0 2008 2009 2010 2011 2012 12 SJP Wealth Management Presentation (First Quarter) - 2013.indd 12 26/04/2013 14:09:32
Slide 13: Record new business (APE)
Record new business (APE) 800 +16% 700 +10% 743.3 600 +32% 500 £ million 400 +5% 300 200 100 0 2008 2009 2010 2011 2012 13 SJP Wealth Management Presentation (First Quarter) - 2013.indd 13 26/04/2013 14:09:40
Slide 14: Growing net inflow of funds under management
Growing net inflow of funds under management 3.5 +10% +4% +30% 3.35bn 2.8 +35% £ billion 2.1 1.4 0.7 0 2008 2009 2010 2011 2012 14 SJP Wealth Management Presentation (First Quarter) - 2013.indd 14 26/04/2013 14:09:49
Slide 15: Funds under management
Funds under management 19% p.a. compound growth over the last 10 years +22% 35 +6% 34.8bn 30 +26% 25 +31% £ billion 20 15 10 5 0 2008 2009 2010 2011 2012 15 SJP Wealth Management Presentation (First Quarter) - 2013.indd 15 26/04/2013 14:09:59
Slide 16: Five strong years of Partner recruitment
Five strong years of Partner recruitment 1800 +8% +6% 1600 +6% 1,788 +9% Number of Partners 1400 +7% 1200 1000 800 600 400 200 0 2008 2009 2010 2011 2012 16 SJP Wealth Management Presentation (First Quarter) - 2013.indd 16 26/04/2013 14:10:07
Slide 17: Productivity (single investment per Partner)
Productivity (single investment per Partner) 3.75 +5% +28% +3% 3.25 3.42 2.75 +2% £ million 2.25 1.75 1.25 0.75 0.25 2008 2009 2010 2011 2012 17 SJP Wealth Management Presentation (First Quarter) - 2013.indd 17 26/04/2013 14:10:16
Slide 18: Record EEV new business profit
Record EEV new business profit +13% 275 +13% 276.8 250 225 +40% 200 175 +26% £ million 150 125 100 75 50 25 0 2008 2009 2010 2011 2012 18 SJP Wealth Management Presentation (First Quarter) - 2013.indd 18 26/04/2013 14:10:25
Slide 19: EEV operating profit
EEV operating profit 400 +12% -2% 350 +45% 365.9 300 250 +12% £ million 200 150 100 50 0 2008 2009 2010 2011 2012 19 SJP Wealth Management Presentation (First Quarter) - 2013.indd 19 26/04/2013 14:10:34
Slide 20: Growth in EEV Net Asset Value per share
Growth in EEV Net Asset Value per share +20% 450 461 400 +9% +24% 350 300 +22% Pence 250 200 150 100 50 0 2008 2009 2010 2011 2012 20 SJP Wealth Management Presentation (First Quarter) - 2013.indd 20 26/04/2013 14:10:44
Slide 21: Continual dividend growth
Continual dividend growth 11 +33% 10 10.64 9 +33% 8 7 +33% Pence 6 +18% +2% +2.5% 5 4 +16% 3 2 1 0 2006* 2007 2008 2009 2010 2011 2012 * Plus special dividend of 6.35 pence 21 SJP Wealth Management Presentation (First Quarter) - 2013.indd 21 26/04/2013 14:10:53
Slide 22: SJP Wealth Management Presentation (First Quarter) - 2013.indd 22
SJP Wealth Management Presentation (First Quarter) - 2013.indd 22 26/04/2013 14:11:02
Slide 23: Cash & Dividends Profile
Cash & Dividends Profile 22 SJP Wealth Management Presentation (First Quarter) - 2013.indd 23 26/04/2013 14:11:11
Slide 24: Underlying post-tax cash arising from inforce business
Underlying post-tax cash arising from inforce business 160 +18% 140 +18% 152.2 120 +24% 100 +8% -3% £ million 80 60 40 20 0 2008 2009 2010 2011 2012 23 SJP Wealth Management Presentation (First Quarter) - 2013.indd 24 26/04/2013 14:11:19
Slide 25: Return on inforce
Return on inforce • Where product structure uses penalties the business is cash neutral in first six years • This relates to £11.3 billion Year £ Billion of new business added in 2007 1.6 last six years which is not 2008 1.4 yet generating positive 2009 1.6 cash earnings* 2010 2.1 2011 2.2 • This am
Slide 26: Underlying post-tax cash result
Underlying post-tax cash result 160 140 120 100 £ million 80 60 40 67.3 65.3 61.4 62.4 60.5 20 0 2008 2009 2010 2011 2012 Investment in new business 25 SJP Wealth Management Presentation (First Quarter) - 2013.indd 26 26/04/2013 14:11:38
Slide 27: Investment in new business
Investment in new business 2012 2011 Post-tax new business cost (£m) (60.5) (62.4) Post-tax EEV new business profit (£m) 218.3 191.1 Margin (% of APE) 37.2% 38.3% IRR (net of tax) 22.5% 20.6% Cash payback period 4 Years 5 Years As % of gross inflows of FUM 1.1% 1.2% 26 SJP Wealth Management Presenta
Slide 28: Underlying net post-tax cash result
Underlying net post-tax cash result 160 140 91.7 120 67.0 100 48.3 £ million 80 24.1 23.5 60 40 20 0 2008 2009 2010 2011 2012 Investment in new business 27 SJP Wealth Management Presentation (First Quarter) - 2013.indd 28 26/04/2013 14:11:58
Slide 29: Continual dividend growth
Continual dividend growth 11 +33% 10 10.64 9 +33% 8 7 +33% 6 Pence +18% +2% +2.5% 5 4 +16% 3 2 1 0 2006* 2007 2008 2009 2010 2011 2012 * Plus special dividend of 6.35 pence 28 SJP Wealth Management Presentation (First Quarter) - 2013.indd 29 26/04/2013 14:12:07
Slide 30: Outlook
Outlook • Familiar and well respected brand/business • Loyal client base (Partners and investors) • Consistent strong recruitment • Resilient Investment Management Approach • Strong solvency position • Strong market for advice • Favourable market place • Uniquely placed business 29 SJP Wealth Manage
Slide 31: Strategy
Strategy 30 SJP Wealth Management Presentation (First Quarter) - 2013.indd 31 26/04/2013 14:12:26
Slide 32: St. James's Place: Overview
St. James’s Place: Overview • Leading UK Wealth Management Company - Established 1991 - UK listed with market cap of c.£2.4 billion - £39 billion in FUM - Target market £50k to £5 million free investable assets • Differentiated business model - Provider and distributor - Own dedicated distribution –
Slide 33: Our products and services
Our products and services • Comprehensive range - of pension, investment and savings ‘‘wrappers’’ - of investment funds sourced from ‘‘whole of market’’ - access to ‘‘whole of market’’ choice of protection and annuities • Our focus - is on our own products and funds (manufactured/EV) • Whilst avoidi
Slide 34: Global Investment Management Expertise
Global Investment Management Expertise Global Range of Investment Houses 33 SJP Wealth Management Presentation (First Quarter) - 2013.indd 34 26/04/2013 14:12:59
Slide 35: Whole of Market approach
Whole of Market approach We take responsibility for the due diligence on all the products and companies we make available to our clients. SIP SERVICES 34 SJP Wealth Management Presentation (First Quarter) - 2013.indd 35 26/04/2013 14:13:53
Slide 36: The Growth Model
The Growth Model Target: 15-20% pa NEW BUSINESS CAPACITY PRODUCTIVITY Number of Partners New Business per Partner 35 SJP Wealth Management Presentation (First Quarter) - 2013.indd 36 26/04/2013 14:14:02
Slide 37: Dedicated distribution – the Partnership
Dedicated distribution – the Partnership • High quality self-employed team of c.1800 advisors - Average age is 48 - Above average productivity - 90%+ per annum retention rate • Aim to grow Partner number by 5% to 7% per annum • Aim to increase productivity each year 36 SJP Wealth Management Presenta
Slide 38: Growing number of Partners
Growing number of Partners 1800 +8% +6% 1600 +6% 1,788 +9% Number of Partners 1400 +7% 1200 1000 800 600 400 200 0 2008 2009 2010 2011 2012 37 SJP Wealth Management Presentation (First Quarter) - 2013.indd 38 26/04/2013 14:14:21
Slide 39: Productivity (single investment per Partner)
Productivity (single investment per Partner) 3.75 +5% +28% +3% 3.25 3.42 2.75 +2% £ million 2.25 1.75 1.25 0.75 0.25 2008 2009 2010 2011 2012 38 SJP Wealth Management Presentation (First Quarter) - 2013.indd 39 26/04/2013 14:14:30
Slide 40: Single premium gross investments
Single premium gross investments 6 £5.9 bn £5.2 bn 5 £4.7 bn 4 £3.4 bn £3.5 bn £ billion £3.1 bn 3 £2.6 bn 2 £1.6 bn £1.2 bn £0.98 bn 1 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 39 SJP Wealth Management Presentation (First Quarter) - 2013.indd 40 26/04/2013 14:14:40
Slide 41: Funds under management
Funds under management 19% p.a. compound growth over the last 10 years +12% 40 39.0 +22% 35 30 +10% +26% Funds £ billion 25 +31% 20 +18% -10% +25% 15 +29% +20% 10 +34% 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 40 March SJP Wealth Management Presentation (First Quarter) - 2013.indd 4
Slide 42: The Partnership
The Partnership 41 SJP Wealth Management Presentation (First Quarter) - 2013.indd 42 26/04/2013 14:15:00
Slide 43: Dedicated distribution – the Partnership
Dedicated distribution – the Partnership • High quality self-employed team of c.1800 advisors - Average age is 48 - Above average productivity - 90%+ per annum retention rate • Aim to grow Partner number by 5% to 7% per annum • Aim to increase productivity each year 42 SJP Wealth Management Presenta
Slide 44: Geographic Distribution: Partners and Clients
Geographic Distribution 31 December 2012 Partners Clients 5% 6% 2% 2% 22% 23% 13% 14% 4% 4% 3% 4% 25% 22% 10% 10% Overseas Clients: 2% 15% 14% 43 SJP Wealth Management Presentation (First Quarter) - 2013.indd 44 26/04/2013 14:15:21
Slide 45: Geographic Distribution: Partners and Funds
Geographic Distribution 31 December 2012 Partners Funds 5% 5% 2% 1% 22% 20% 13% 13% 4% 4% 3% 4% 25% 24% 10% 10% Overseas Clients: 3% 15% 17% 44 SJP Wealth Management Presentation (First Quarter) - 2013.indd 45 26/04/2013 14:15:32
Slide 46: Geographic Distribution: Funds and New Funds
Geographic Distribution 31 December 2012 Funds New Funds 2012 5% 5% 1% 1% 20% 21% 13% 13% 3% 4% 3% 4% 24% 24% 10% 9% Overseas Clients: 3% Overseas Clients: 3% 17% 17% 45 SJP Wealth Management Presentation (First Quarter) - 2013.indd 46 26/04/2013 14:15:44
Slide 47: Partners by age band
Partners by age band 31 December 2012 Existing Partners New Partners 55-65 65+ <35 65+ <35 3% 55-65 1% 12% 21% 6% 10% 35-45 35-45 28% 37% 45-55 45-55 42% 40% 46 SJP Wealth Management Presentation (First Quarter) - 2013.indd 47 26/04/2013 14:15:57
Slide 48: Benefits of our own distribution
Benefits of our own distribution • New business and expenses are more predictable • Spread of production – no one adviser more than 1% of new business • Less exposed to market pressures • Greater control over quality of new business • Low lapse rates • Ability to build and maintain distribution led
Slide 49: Investment Management
Investment Management 48 SJP Wealth Management Presentation (First Quarter) - 2013.indd 49 26/04/2013 14:16:19
Slide 50: Our approach to investment management
Our approach to investment management INVESTMENT Input/Advice from COMMITTEE Stamford Associates ‘MANAGES THE MANAGERS’ Decisions: Appoint the Sets performance Risk management Change firm? Fund Managers objectives and strategy Change manager? No change? 49 SJP Wealth Management Presentation (First Q
Slide 51: Stamford Associates Independent Investment Consultancy
Stamford Associates Independent Investment Consultancy Research Fund Monitor Managers Advise Investment Manager Market and Portfolios Committee Access to Qualitative and Focus on Future Whole Market Quantitative Outperformance • Analyse & identify talented • Number crunching Recommend: managers • Mo
Slide 52: Independent guidance and expertise
Independent guidance and expertise Vivian Bazalgette, Sarah Bates Peter Dunscombe Win Robbins Chairman Vice Chairman of the Chairman of Stena Line (UK) Previously Chief Investment Trustee Director of Now Govenors of Dulwich College, Pension Fund Trustees and Officer of the BBC Pension Pensions Trust
Slide 53: Growth Portfolios
Growth Portfolios DEFENSive Portfolio Conservative Portfolio BALANCED Portfolio Low risk Low to medium risk Medium risk • Aims to provide a positive return after charges over • Aims to provide steady growth for investments of at • Aims to provide growth for investments of at least a rolling five-yea
Slide 54: Growth Portfolios (cont.)
Growth Portfolios (cont.) MANAGED FUNDS Portfolio ADVENTUROUS Portfolio Medium risk Medium to high risk • Aims to provide capital growth for investments of • Aims to provide higher levels of capital growth for at least five years investments of at least ten years • Diversified across managers with d
Slide 55: Income Portfolios
Income Portfolios IMMEDIATE INCOME Portfolio BALANCED INCOME Portfolio DEFERRED INCOME Portfolio Low to medium risk Medium risk Medium risk • Aims to generate a consistent level of income with • Aims to generate an attractive level of income with • Aims to generate a rising level of income some pote
Slide 56: Weighted 5-year Rolling Performance
Weighted 5-year Rolling Performance To 31 March 2013 (excluding Money Market & Alternative Assets) 100% 90% 80% 70% 61% 60% 59% 74% 60% 75% 76% 76% 77% 89% 92% 50% 40% 30% 20% 39% 40% 41% 26% 25% 10% 24% 24% 11% 23% 8% 0% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Below Peer Group Average Abo
Slide 57: Weighted 10-year Rolling Performance
Weighted 10-year Rolling Performance To 31 March 2013 (excluding Money Market & Alternative Assets) 100% 90% 80% 70% 60% 83% 79% 79% 86% 86% 86% 90% 92% 89% 92% 50% 40% 30% 20% 10% 14% 14% 14% 17% 21% 21% 10% 8% 8% 11% 0% 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Below Peer Group Average Abo
Slide 58: Global Investment Management Expertise
Global Investment Management Expertise Global Range of Investment Houses 57 SJP Wealth Management Presentation (First Quarter) - 2013.indd 58 26/04/2013 14:18:23
Slide 59: Benefits of investment management approach
Benefits of investment management approach • No in-house managers, so no conflict of interest • Benefit from Investment Committee experience & expertise • Ability to appoint the best fund managers with wholesale purchasing power • Continuous monitoring plus quarterly reviews • Easy to change manager
Slide 60: Funds under management
Funds under management 19% p.a. compound growth over the last 10 years +12% 40 39.0 +22% 35 30 +10% +26% Funds £ billion 25 +31% 20 +18% -10% +25% 15 +29% +20% 10 +34% 5 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 59 March SJP Wealth Management Presentation (First Quarter) - 2013.indd 6
Slide 61: Funds Under Management by Asset Class and Region
Funds Under Management: shown by Asset Class and Region 31 December 2012 Property 3% PABs/FABs UK 40% 3% Cash & Other Assets 5% European 14% International Far East US 19% 5% 11% 60 SJP Wealth Management Presentation (First Quarter) - 2013.indd 61 26/04/2013 14:18:58
Slide 62: Summary
Summary • Established and respected business • Experienced and stable management team • Experienced and stable advisory team – ‘The Partnership’ • Proven track record of growth • Resilient in tough markets • Favourable demographics 61 SJP Wealth Management Presentation (First Quarter) - 2013.indd 62
Slide 63: Appendices
Appendices 62 SJP Wealth Management Presentation (First Quarter) - 2013.indd 63 26/04/2013 14:19:17
Slide 64: SJP Wealth Management Presentation (First Quarter) - 2013.indd 64
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Slide 65: Analysis of EEV life, pension & unit trust pre-tax operating profit
Analysis of EEV life, pension & unit trust pre-tax operating profit £ million 2012 2011 New business contribution 276.8 246.0 Profits from existing business - expected 96.0 91.2 - experience variance 4.6 38.1 - operating assumption changes (4.3) 0.6 Investment income 3.4 2.8 Operating profit 376.5 3
Slide 66: Pre-tax EEV profit
Pre-tax EEV profit £ million 2012 2011 Life, pension & unit trust 376.5 378.7 Distribution 5.3 6.1 Other operations (15.9) (13.3) Total operating profit 365.9 371.5 Investment variance 190.4 (180.4) Economic changes (3.7) ( 0.3) Pre-tax result 552.6 190.8 64 SJP Wealth Management Presentation (First
Slide 67: EEV Net Asset Value per share
EEV Net Asset Value per share Pence 2012 2011 NAV per share 461.0 385.0 65 SJP Wealth Management Presentation (First Quarter) - 2013.indd 67 26/04/2013 14:20:01
Slide 68: Pre-tax IFRS profit
Pre-tax IFRS profit £ million 2012 2011 Life 111.7 89.1 Unit trust 33.5 27.8 Distribution 5.3 6.1 Other operations (15.9) (13.3) Profit before shareholder tax 134.6 109.7 66 SJP Wealth Management Presentation (First Quarter) - 2013.indd 68 26/04/2013 14:20:14
Slide 69: IFRS Net Asset Value per share
IFRS Net Asset Value per share Pence 2012 2011 NAV per share 150.4 137.5 67 SJP Wealth Management Presentation (First Quarter) - 2013.indd 69 26/04/2013 14:20:27
Slide 70: Capital position as at 31 December 2012
Capital position as at 31 December 2012 Other £ million Life Regulated Other Total Solvency position Solvency net assets 199.1 29.4 175.0 403.5 Solvency requirement 43.8 14.0 Solvency ratio 455% 210% 68 SJP Wealth Management Presentation (First Quarter) - 2013.indd 70 26/04/2013 14:20:40
Slide 71: Group expenses
Group expenses £ million 2012 2011 Paid from policy margins Partner remuneration 307.0 276.7 Investment expenses 89.4 92.5 3rd party administration 32.6 33.5 429.0 402.7 Direct expenses Other production related costs 59.5 54.5 Establishment expenses 102.4 95.0 FSA/FSCS 12.0 8.0 Development costs 10.
Slide 72: Our clients
Our clients 70 SJP Wealth Management Presentation (First Quarter) - 2013.indd 72 26/04/2013 14:21:05
Slide 73: Award winning into 2013
Award winning into 2013 Best Financial Adviser 2012/13 Best Private Client Asset Manager UK 71 SJP Wealth Management Presentation (First Quarter) - 2013.indd 73 26/04/2013 14:21:27
Slide 74: FUM by Value of Clients
FUM by Value of Clients 31 December 2012 FUM by Client Band <£50,000 11% £50,000 to 1/4 million >£1 million 40% 15% 1/2 million to 1 million 14% 1/4 million to 1/2 million 20% 72 SJP Wealth Management Presentation (First Quarter) - 2013.indd 74 26/04/2013 14:21:40
Slide 75: New and Retained Clients by Age Band
New and Retained Clients by Age Band 31 December 2012 Existing Clients by Age Band New Clients by Age Band 70 + <30 30-40 70 + <30 19% 2% 8% 30-40 9% 14% 10% 65-70 65-70 10% 11% 40-50 40-50 26% 21% 60-65 60-65 10% 11% 55-60 50-55 55-60 50-55 11% 13% 12% 13% 73 SJP Wealth Management Presentation (Fir
Slide 76: What our clients think
What our clients think* • 73% of clients scored their overall satisfaction with St. James’s Place as 8 or more out of 10 • 25% of clients scored us 10 out of 10 • 76% of clients agree that we provide excellent service • 67% of clients rated 8 or more out of 10 for the way in which we communicate wit
Slide 77: Clients Service Standards Charter
Clients Service Standards Charter We will: • Fully understand our clients’ financial circumstances • Identify our clients’ goals and objectives • Liaise with other professionals and experts as needed • Formulate advice and make recommendations • Provide a full explanation of all our costs, charges a
Slide 78: Our market
Our market 76 SJP Wealth Management Presentation (First Quarter) - 2013.indd 78 26/04/2013 14:22:31
Slide 79: Our market
Our market • The market is big • Favourable demographics • The tax burden is increasing • UK high net worth individuals want face-to-face advice 77 SJP Wealth Management Presentation (First Quarter) - 2013.indd 79 26/04/2013 14:22:45
Slide 80: The SJP Market Place: number of individuals
The SJP Market Place UK individuals with between £100k and £5m of net worth held 14 12,644,000 11,429,000 11,871,000 Number of Individuals 12 10,615,000 10 (million) 8 6 4 2 0 2012 2013 2014 2015 Year Source: Ledbury Research 78 SJP Wealth Management Presentation (First Quarter) - 2013.indd 80 26/04
Slide 81: The SJP Market Place: net worth held
The SJP Market Place Amount of net worth held by UK individuals with between £100k and £5m 4,050bn 4,000 3,811bn 3,424bn 3,653bn 3,500 3,000 2,500 £ billion 2,000 1,500 1,000 500 0 2012 2013 2014 2015 Year Source: Ledbury Research 79 SJP Wealth Management Presentation (First Quarter) - 2013.indd 81
Slide 82: The SJP Opportunity
The SJP Opportunity • ISAs - Cash £200 bn (Sept 2012 - HMRC) - Stocks & shares £190 bn (Sept 2012 - HMRC) • Building Society deposits £215 bn (30/06/12 - Building Societies Association) • Mutual lenders and deposit takers £250 bn (30/06/12 - Building Societies Association) • Bank deposits £696 bn (N
Slide 83: The SJP Opportunity
The SJP Opportunity • Pensions - 52% of open defined benefit schemes expect to close to new members within 5 years. (National Association of Pension Funds, 23 January 2009) - More than 59% of UK workers are not confident that they will have enough money during retirement. (Club VITA survey) - Almost
Slide 84: The SJP Opportunity
The SJP Opportunity • More than 10 million people in the UK today can expect to live to see their 100th birthday. (DWP December 2010) • Nearly a fifth of people alive now in the UK will survive until they are at least 100. (DWP December 2010) • There isn’t going to be enough money for all these idle
Slide 85: Post RDR
Post RDR 83 SJP Wealth Management Presentation (First Quarter) - 2013.indd 85 26/04/2013 14:23:43
Slide 86: The advice market – transparent... but not simple
The advice market – transparent... but not simple The table illustrates the fees a client may have to consider when trying to compare advice and products based on publicly available information for a variety of firms and providers. % of initial investment Tiered fee based on amount invested + VAT In
Slide 87: Basic comparison with other options
Basic comparison with other options Advice Platform Asset management Total Bps Direct to customer platform 0 50-75 75 125 -150 ‘Traditional’ IFA/platform combination 60-80 25-50 75 160 -205 St. James’s Place Bundled 160 -190 Source: Barclays research, company data 85 SJP Wealth Management Presentati
Slide 88: Adviser numbers down 20%
Adviser numbers down 20% ADVISER NUMBERS FSA FIGURES FSA ESTIMATES TYPE OF ADVISER 31 DEC 2012 31 DEC 2011 Financial advisers 20,453 25,616 Bank advisers 4,809 8,658 Wealth managers/stockbrokers 3,718 4,043 86 SJP Wealth Management Presentation (First Quarter) - 2013.indd 88 26/04/2013 14:24:14
Slide 89: SJP Wealth Management Presentation (First Quarter) - 2013.indd 89
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Slide 90: Our Shareholders
Our Shareholders 1. LBG 36.8% 2. Ameriprise Financial Inc 5.5% 3. Schroder 5.2% 4. Baillie Gifford 5.0% 5. Prudential (M&G) 3.4% 6. AXA Framlington 2.7% 7. Kames Capital 2.5% 8. Legal & General 1.9% 9. Allianz Global 1.7% 10. Old Mutual Global 1.5% As at 31 March 2013 87 SJP Wealth Management Presen
Slide 91: Analyst following
Analyst following • Andrew Broadfield - Barclays Capital • David McCann - Numis • Chris Esson - Credit Suisse • Marcus Barnard - Oriel Securities • Oliver Steel - Deutsche Bank • Barrie Cornes - Panmure Gordon • Colin Simpson - Goldman Sachs • Stuart Duncan - Peel Hunt • Kevin Ryan - Investec • Paul
Slide 92: April 2013
April 2013 SJP Wealth Management Presentation (First Quarter) - 2013.indd 92 26/04/2013 14:24:44
St. James's Place — Investor Presentation (April 2013) on 6ix