St. James's Place Plc · LSE:STJ
St. James's Place — Investor Presentation (May 2016)
92 slides from St. James's Place's investor presentation, May 6, 2016
Slide 1: May 2016
<p | ST. JAMES’S PLACE WEALTH MANAGEMENT
Slide 2: Part One – Business Model contents
PA RT O N E – BU S IN E S S M ODEL Strategy 2 The Partnership 17 Investment Management 31 Our Clients 43 Client Wealth Account Survey 2015 47 Our Market 50 Costs and charges 63 PART TWO – FINANCIAL RESULTS Solvency II 70 Cash & Dividend Profile 71 Our Shareholders 80 Analyst following 82 1
Slide 3: Part One: Business Model
ST. JAMES’S PLACE WEALTH MANAGEMENT PART ONE Business Model
Slide 4: Strategy
ST. JAMES’S PLACE WEALTH MANAGEMENT Strate gy
Slide 5: St. James's Place: Overview
St. James’s Place: Overview • Leading UK Wealth Management Company - Established 1991 - UK listed with market cap of c.£5 billion - £62 billion in funds under management - Target market £50k to £5 million free investable assets • Differentiated business model - ‘‘Vertically integrated’’ - Own dedica
Slide 6: Global Investment Management Expertise
Global Investment Management Expertise 35 funds 34 fund houses 14 exclusive to UK retail investors 65 lead fund managers 8 asset classes/ strategies 14 cities 4
Slide 7: 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 5
Slide 8: Strategic context – the growth model
Strategic context – the growth model NEW BUSINESS CAPACITY PRODUCTIVITY Number of Partners New Business per Partner Experienced recruitment Personal development Asia Broadening Investment Portfolio Academy SJP Money Management Next Generation Discretionary Fund Management Discretionary Fund Manageme
Slide 9: Growing number of Partners
Growing number of Partners 8% p.a. compound growth over the last 5 years and 7% p.a. over the last 10 years 2,500 6.2% 8.8% 2,264 2,000 9.5% 8% 6% 6% 9% 1,500 7% Number 8% 1% 1,000 500 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 7
Slide 10: Productivity (gross inflows per Partner)
Productivity (gross inflows per Partner) 4.50 +9% 4.00 +6% +11% 4.20 3.50 +1% +26% +3% 3.00 £ million 2.50 2.00 1.50 1.00 0.5 0.0 2010 2011 2012 2013 2014 2015 8
Slide 11: Partnership, including Advisers
Partnership, including Advisers 10% p.a. compound growth over the last 5 years and 8% p.a. over the last 10 years Advisers Partners 10% 3,000 10% 3,113 13% 2,500 10% 7% 6% 2,000 8% 9% 10% Number 1,500 10% - 4% 1,000 500 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 9
Slide 12: Productivity (gross inflows per Adviser)
Productivity (gross inflows per Adviser) +6% 3.00 +9% +4% +3% 0% 3.13 +26% 2.50 2.00 £ million 1.50 1.00 0.5 0.0 2010 2011 2012 2013 2014 2015 10
Slide 13: Gross inflows by quarter
Gross inflows by quarter £bn 3 2.5 2.5 2.45 2.3 2.3 2.1 2.1 2.0 2013 2 1.9 1.9 1.9 1.7 2014 1.6 1.6 2015 1.5 2016 1 0.5 0 Q1 Q2 Q3 Q4 2013 over 2012 +28% +22% +27% +11% 2014 over 2013 +15% +17% +19% +12% 2015 over 2014 +12% +17% +20% +20% 2016 over 2015 +16% 11
Slide 14: Gross inflows
Gross inflows £9.2 9 +17% £7.9 8 7 £6.8 6 £5.6 £5.2 £ billion 5 £4.7 4 £3.3 £3.1 £2.9 3 £2.5 £2.4 2 +16% 1 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 March 12
Slide 15: Consistent net inflow of funds under management
Consistent net inflow of funds under management 6.0 +14% +20% 5.8bn 5.0 +28% 4.0 +4% +10% £ billion 3.0 +30% +31% 2.0 +34% -11% +60% +3% 1.0 1.4bn 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 March 13
Slide 16: Fund flow information
Fund flow information £ billion 31 Mar 2016 31 Dec 2015 31 Dec 2014 Funds under management at start 58.6 52.0 44.3 Rowan Dartington Acquisition 1.2 Gross inflows 2.5 9.2 7.9 Investment return 0.8 0.8 2.6 63.1 62.0 54.8 Regular income withdrawals/maturities (0.4) (1.1) (0.9) Surrenders/part surrender
Slide 17: Net inflows 2006–2015
15 Q1 2016 Q4 2015 Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014 Q4 2013 Q3 2013 Q2 2013 Q1 2013 Q4 2012 Net inflows 2006 –2015 Q3 2012 Q2 2012 Q1 2012 Q4 2011 Q3 2011 Q2 2011 Q1 2011 Q4 2010 Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009 Q4 2008 Q3 2008 Q2 2008 Q1 2008 Q4 2007 Q3
Slide 18: Funds under management
Funds under management 17% p.a. compound growth over the last 5 years and 17% p.a. over the last 10 years (at Dec 2015) +6% 60 +13% 62.0 +17% 50 +27% 40 +22% £ billion +6% 30 +26% +31% +18% -10% 20 +25% 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 March 16
Slide 19: The Partnership
ST. JAMES’S PLACE WEALTH MANAGEMENT The Partnership
Slide 20: Dedicated distribution – the Partnership
Dedicated distribution – the Partnership • High quality self-employed team of 2,264 Partners - Average age is 48 - Above average productivity - 90%+ per annum retention rate • Total number of qualified Advisers 3,113 • Aim to grow Adviser numbers by 5% to 7% per annum • Aim to increase productivity
Slide 21: Geographic Distribution
Geographic Distribution 31 December 2015 Partners Clients 5% 6% 2% 2% 23% 23% 24% 12% 14% 14% 4% 4% 3% 4% 3% 4% 4% 4% 21% 22% 22% 9% 10% Overseas Partners: 3% Overseas Clients: 2% 17% 13% 19
Slide 22: Partnership (including Advisers) by age band
Partnership (including Advisers) by age band 31 December 2015 Existing Partnership New Partnership 65+ <35 65+ <35 55-65 4% 55-65 22% 9% 2% 25% 13% 35-45 35-45 25% 29% 45-55 45-55 31% 40% 20
Slide 23: Partnership development
Partnership development Business Business Transition Establishment Development Risk Acquisition Processing FIELD MANAGEMENT TEAM ST. JAMES’S PLACE PARTNER PRACTICE CIRENCESTER SUPPORT FUNCTION Private Technical Business sale Training & Marketing Technology Risk Clients Support & purchase Development
Slide 24: Field management team
Field management team Types of development undertaken Business Acquisition (48) Transition Management Business process Understanding the individual (31) support (8) Client advice and service Build our relationship Doing buisiness at St. James’s Desire goals and motivators Business plan Place ‘The co
Slide 25: Total Adviser numbers
Total Adviser numbers FSA FSA FCA FCA FIGURES FIGURES FIGURES FIGURES TYPE OF ADVISER 31 DEC 2012 31 DEC 2013 31 OCT 2014 31 OCT 2015* Financial advisers 20,453 21,881 21,496 22,557 Bank advisers 4,809 3,556 3,182 3,672 Discretionary fund managers/stockbrokers 3,718 5,783 6,475 4,371 Total number of
Slide 26: Academy programme
• Over 150 currently in programme • In addition, there are 81 ‘Next Generation’ participants • Three Regional Academies (London, Manchester, Solihull) • Opening Regional Academy in Edinburgh – 2016 • Typical intake 15 – 20 per programme • 49 graduates in 2015 • Expect 60 graduates in 2016 23
Slide 27: St. James's Place Academy
St. James’s Place Academy • 51% Financial background • Average age 38: previous earnings c£74,000 • 82% under age 46 • 23% women • 87% degree holders • 17% Masters/Pofessionally qualified • 61% are Partner referrals 24
Slide 28: Asia: The Opportunity
ASIA The Opportunity • Offices in Singapore, Hong Kong and Shanghai • 83 advisers • Estimated 120,000 UK ex-pats with circa £12 billion of investible wealth (£100k each) – projected to grow to over £44 billion by 2020 • Our global investment proposition and relationship based approach is well suited
Slide 29: Rowan Dartington overview
• Trusted relationships – a people business, built on trust and long- term reliationships, face-to-face • Specialises in Discretionary Fund Management (DFM) • Complimentary service • Growth model – acquiring and retaining client investments • Strong persistency – long-term retention data similar to
Slide 30: Complementary service
Complementary service • Managing clients assets – making all investment decisions • Open-architecture capability – access to direct equities and bonds • Bespoke portfolios – for example stripping out banking or oil stocks or having a more tactical asset allocation • Execution capability – e.g. liqui
Slide 31: Additional services
Additional services • Advisory Stockbroking • Probate service – Clients can buy and sell share holdings – Probate valuation service targeted – Includes CGT management supporting both law firms and private clients • ‘Execution only’ dealing – The service provides: – Reactive dealing service where no
Slide 32: The Discretionary Fund Management Opportunity
The Discretionary Fund Management Opportunity • DFM Market Size – c.£500bn and growing with ~4,000 investment executives • DFM Recruitment – new investment executives attracted to the RD/SJP business model • Partner & adviser recruitment – IFAs with client asset management outsourced to DFM • New cl
Slide 33: Summary
Summary • Cultural alignment with St. James’s Place • Long term, trusted relationships • Broader range of additional investment management services • Growth opportunity in a consolidating sector • Manage more of clients wealth and acquire new clients • Attract new clients, Investment Executives, Par
Slide 34: ST. JAMES’S PLACE
ST. JAMES’S PLACE WEALTH MANAGEMENT
Slide 35: Investment Management
ST. JAMES’S PLACE WEALTH MANAG Investment Management
Slide 36: Our approach to investment management
Our approach to investment management ‘INDEPENDENT EXPERTISE’ THE INVESTMENT Peter Win Dunscombe Robbins Davina Curling Steven Daniels COMMITTEE ‘MANAGES THE MANAGERS’ Decisions: Appoints the Sets performance Risk management Change firm? fund managers objectives and strategy Change manager? No chang
Slide 37: Stamford Associates and Redington: independent investment consultancy
Stamford Associates and Redington: 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 and identify • Data analysis Recommend: talented
Slide 38: Global Investment Management Expertise
Global Investment Management Expertise 35 funds 34 fund houses 14 exclusive to UK retail investors 65 lead fund managers 8 asset classes/ strategies 14 cities 34
Slide 39: Growth Portfolios
Growth Portfolios DEFENSIVE PORTFOLIO CONSERVATIVE PORTFOLIO BALANCED PORTFOLIO Low Risk Lower-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-year
Slide 40: Growth Portfolios (cont.)
Growth Portfolios (cont.) MANAGED FUNDS PORTFOLIO ADVENTUROUS PORTFOLIO Medium Risk Upper-Medium 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 dif
Slide 41: Income Portfolios
Income Portfolios IMMEDIATE INCOME PORTFOLIO BALANCED INCOME PORTFOLIO DEFERRED INCOME PORTFOLIO Lower-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 poten
Slide 42: Funds under management
Funds under management 17% p.a. compound growth over the last 5 years and 17% p.a. over the last 10 years (at Dec 2015) +6% 60 +13% 62.0 +17% 50 +27% 40 +22% £ billion +6% 30 +26% +31% +18% -10% 20 +25% 10 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 March 38
Slide 43: Client Experience
Client Experience Over 3 and 5 years the client outcomes profiles align with our medium risk portfolio results. 3 YEARS (per annum) GROWTH PORTFOLIOS INCOME PORTFOLIOS ACTUAL CLIENT OUTCOME Defensive 2.6% Conservative 3.9% Immediate Income 5.9% Lower quartile 5.7% Balanced 5.5% Balanced Income 7.4%
Slide 44: Annualised 3 year performance
Annualised 3 year performance St. James’s Place Portfolios vs ARC Private Client Investment peer groups St. James’s Place ARC PCI Peer Group Average 10% 9.1 8.6 8% 7.3 7.2 7.4 6.4 6.4 5.9 6% 5.5 5.2 5.2 3.9 4% 3.4 3.4 3.4 2.6 2% 0% Defensive Conservative Balanced Managed Adventurous Immediate Balanc
Slide 45: Funds Under Management: by Asset Class, Region and Wrapper
Funds Under Management: Shown by Asset Class, Region and Wrapper 31 December 2015 Property Cash Other Assets Unit Trusts & ISAs Alternatives 4% 8% Investments 2% 3% European 25% UK 11% 40% 27% US Fixed Interest Asia & Pacific 25% Pensions 35% 15% 8% 41
Slide 46: 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 47: Our Clients
ST. JAMES’S PLACE WEALTH M/ Our Clients
Slide 48: Geographic Distribution of Client FUM
Geographic Distribution of Client FUM 31 December 2015 Clients 5% 506,000 investment clients 1% 20% Male 53% Female 47% 13% Average age 56 4% 3% 4% NB This number represents the number of individual 25% investment holders. Overseas Clients: 3% 10% 16% 44
Slide 49: Clients and FUM by Value Band
Clients and FUM Clients by Value Band 31 December 2015 All Clients - FUM £1m+ £500k- 17% <£50k £1m 8% 16% £250k- £50k- £500k £250k 22% 37% 45
Slide 50: New and Retained Clients by Age Band
New and Retained Clients by Age Band 31 December 2015 Existing Clients by Age Band New Clients by Age Band <30 30-40 <30 30-40 70 + 4% 8% 40-50 70 + 11% 18% 10% 11% 22% 65-70 8% 40-50 65-70 20% 10% 60-65 50-55 11% 60-65 55-60 16% 55-60 50-55 10% 12% 13% 16% 46
Slide 51: Client Wealth Account Survey 2015
Client Wealth Account Survey 2015 47
Slide 52: Client wealth account survey
Client wealth account survey Do you feel the St. James’s Place proposition provides value for money? Good 43% Excellent 36% Reasonable 19% Poor 2% 48
Slide 53: Client wealth account survey
Client wealth account survey Knowing everything you know of the St. James’s Place proposition, would you recommend it to others? Yes I would, Yes, but I have and have already yet to do so done so 37% 58% No 49 5%
Slide 54: Our Market
ST. JAMES’S PLACE WEALTH M/ Our Market
Slide 55: Our Market
Our Market • The market is big • Favourable demographics • The tax burden is increasing • Move from state to individual responsibility • UK high net worth individuals want face-to-face advice • Limited access to advice as adviser numbers have reduced 51
Slide 56: The SJP Marketplace: UK individuals
The SJP Marketplace UK individuals with between £50k and £5m of liquid assets 12,000 11,376 10,496 10,957 10,071 Number of Individuals 9,235 9,616 10,000 8,000 (million) 6,000 4,000 2,000 0 2014 2015 2016 2017 2018 2019 Year Source: Datamonitor Global Wealth Management Report, 3 February 2016. 52
Slide 57: The SJP Marketplace: liquid assets
The SJP Marketplace Amount of liquid assets held by UK individuals with more than £50k 2,000 £1,809bn £1,706bn £1,755bn £1,634bn £1,665bn £1,610bn 1,500 £ billion 1,000 500 0 2014 2015 2016 2017 2018 2019 Year Source: Datamonitor Global Wealth Management Report, 3 February 2016. 53
Slide 58: Source of new business/markets
Source of new business/markets • 81% existing clients and referrals • 7% Introducers • 12% new clients from other sources • 27% of Partners experienced less competition in 2013 • 39% reported acquiring new clients due to decline of high street advice (banks) Source: Partner Bi-annual Survey 2013 54
Slide 59: UK Aggregate Wealth
UK Aggregate Wealth 30% 28% 25% 25% 20% 19% 15% 12% 10% 10% 5% 3% 2% 0% 0 16-24 25-34 35-44 45-54 55-64 65-74 75-84 85+ Source: ONS and Bernstein analysis 60% 55
Slide 60: Projected Growth in Retirement Income Assets
Projected Growth in Retirement Income Assets (£bn) 600 CAGR 4% 400 300 15% 35 200 15 225 210 0% 121 0 2005 2010 2015E 2020E 2025E 2030E Individual Annuities Income Drawdown/Alternative products Source: Synthesys and Bernstein estimates and analysis 2015 56
Slide 61: Estimated retirement withdrawals from UK pension funds
Estimated retirement withdrawals from UK pension funds £m 25000 20000 63% 15000 10000 21% 5000 14% 0 2% 2012 2013 2014 2015 est St. James’s Place Drawdown Investment Annuity Purchase Source: SJP Analysis and Estimates Tax free cash Other withdrawals based on ABI and other statistics 57
Slide 62: Lessons from the USA
Lessons from the USA • US market has double the number of advisers per head than the UK (1:1100 vs 1:2500 UK) • Average wealth per adviser broadly comparable at circa £40m • 80% of US consumers used a financial adviser to purchase a mutual fund – 45% relied exclusively – 35% used a combination of di
Slide 63: Robo advice
Robo advice • Personal relationships overwhelmingly preferred over ‘‘robo-advisers’’ for financial advice • 69% of Generation X and baby boomers say: ‘‘I don’t really trust online advice.’’ Source: The Allianz Generations Apart Study of baby boomers and Generation X, January 2015. 59
Slide 64: UK Funds under management
UK Funds under management Funds £billion Private Equity Property Hedge Private Clients £142 £264 £705 £277 Corporate Pensions £2,091 Retail Clients £1,063 Insurance Companies £1,008 The City UK - UK Fund Management 2015 – figures relate to 30 November 2015. Insurance & Corporate Pensions relate to i
Slide 65: Private Asset & Wealth Managers – Top 10
Private Asset & Wealth Managers – Top 10 2014 2013 Company AUM end 2014 Change v 2013 Share Rank Rank (£bn) (£bn) (of top 40) 1st 3rd St. James’s Place Wealth Management 49.6 7.7 (17.4%) 8.8% 2nd 1st Coutts & Co 48.8 -0.8 (-1.6%) 8.3% 3rd 2nd Barclays Wealth 36.0 -12.1 (-25.2%) 6.1% 4th 4th Goldman
Slide 66: The SJP Opportunity
The SJP Opportunity • ISAs - Cash £237 bn (Aug 2015 - HMRC) - Stocks & shares £246 bn (Aug 2015 - HMRC) • Bank and Building Society deposits £1,212 bn (Dec 2015 - Building Societies Association) • National Savings and Investment £134 bn (Dec 2015 - Building Societies Association) (NS&I) deposits • M
Slide 67: Costs and charges
ST. JAMES’S PLACE WEALTH MANAG Costs and charges
Slide 68: The advice market... transparent?
The advice market... transparent? 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 Initial advice fee OR Hourly rate (£) Ra
Slide 69: Full advice service
Full advice service 10 year reduction in yield comparison 3.64% St. James’s Place 2.10% Source: Grant Thornton Adviser Charges Report November 2015. Grant Thornton has collated and computed data in the attached table from publicly available information, and some mystery shopping face-to-face meeting
Slide 70: 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 • Award winning performance 66
Slide 71: Part Two: Financial Results
ST. JAMES’S PLACE WEALTH MANAGEMENT PART TWO Financial Results
Slide 72: Analysis of investment, pension & unit trust pre-tax operating profit
Analysis of investment, pension & unit trust pre-tax operating profit £ million 31 Dec 2015 31 Dec 2014 New business contribution 440.7 373.1 +18% Profits from existing business - expected 172.4 182.0 - experience variance 78.1 78.5 - operating assumption changes 44.1 3.0 Investment income 6.1 8.1 O
Slide 73: Pre-tax EEV profit
Pre-tax EEV profit £ million 31 Dec 2015 31 Dec 2014 Investment, pension & unit trust 741.4 644.7 Distribution (21.2)* (10.9) Other operations (60.0) (37.4) Total operating profit 660.2 596.4 Investment variance (24.4) 80.2 Economic changes 0.9 (7.0) Pre-tax result 636.7 669.6 EEV net asset value pe
Slide 74: IFRS Pre-tax underlying profit
IFRS Pre-tax underlying profit £ million 31 Dec 2015 31 Dec 2014 Like-for-like operating performance 217.6 202.8 +7% Share options (15.7) (11.4) FSCS Levy (20.1) (5.9) Back office infrastructure (18.1) (11.9) Pre-tax underlying profit 163.7 173.6 DAC/DIR/PVIF (12.4) 9.3 Profit before shareholder tax
Slide 75: Solvency II
Solvency II • Has not altered our business, our risk profile nor how we look at capital • Free assets – £370 million higher than under Solvency I • Group Solvency ratio 151%, not the most appropriate measure • The key measure is net assets – £204 million higher than under Solvency I • Net assets are
Slide 76: ST. JAMES’S PLACE
ST. JAMES’S PLACE WEALTH MANAGEMENT
Slide 77: Cash & Dividend Profile
ST. JAMES’S PLACE WEALTH MANAGEMENT Cash & Dividend Profile
Slide 78: Underlying post-tax cash arising from in-force business
Underlying post-tax cash arising from in-force business 300 +13% 250 +26% 266.3 +30% 236.5 200 £ million +15% 188.2 150 +23% +15% 144.5 100 125.4 102.3 50 0 2010 2011 2012 2013 2014 2015 72
Slide 79: Return on inforce
Return on inforce • The estimated current value of new business added in the last six years, which is not yet generating positive cash Year £ Billion earnings is circa £19.2 billion. 2010 2.0 2011 2.4 • The future post tax cash 2012 2.7 earnings of these funds is 2013 3.7 2014 3.9 estimated to be ci
Slide 80: Gross Inflows
Gross Inflows £9.2 bn 9 £7.9 bn 8 7 £6.8 bn 6 £5.6 bn £5.2bn £ billion 5 £4.7 bn 4 £3.3 bn £3.1 bn £2.9 bn 3 £2.5 bn 2 £1.6 bn 1 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 New investments with early withdrawal charge 74
Slide 81: Investment in new business
Investment in new business 300 Underlying post-tax cash arising from in-force business 250 200 £ million 150 100 50 61.4 62.4 60.5 48.3 62.7 84.2* 0 2010 2011 2012 2013 2014 2015 * Includes additional £11.2 million FSCS levy 75
Slide 82: Investment in new business
Investment in new business 31 Dec 2015 31 Dec 2014 Post-tax investment in new business (£m) (84.2)* (62.7) Post-tax present value of expected profit 356.8 298.4 from investment (£m) IRR (net of tax) 22.1% 26.1% Cash payback period (years) 5 4 Investment as % of gross inflow 0.9% 0.8% * Includes addi
Slide 83: Underlying post-tax cash result
Underlying post-tax cash result 300 250 182.1* 173.8 200 £ million 139.9 150 84.0 100 63.4 40.9 50 0 2010 2011 2012 2013 2014 2015 * Includes additional £11.2 million FSCS levy 77
Slide 84: Continual dividend growth
Continual dividend growth 30 +20% +46% 27.96 25 20 +50% Pence 15 +33% 10 +33% +33% +2% +2.5% +18% 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Payout Ratio 79% 87% 92% 71% 63% 64% 59% 70% 80%* *This would represent a payout ratio to underlying cash of 76% excluding increase in FSCS levy. 78
Slide 85: 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 79
Slide 86: ST. JAMES’S PLACE
ST. JAMES’S PLACE WEALTH MANAGEMENT
Slide 87: Our Shareholders
ST. JAMES’S PLACE WEALTH MANAGEMENT Our Shareholders
Slide 88: Our Shareholders
Our Shareholders 1. Baillie Gifford 5.85% 2. Fidelity (FMR) 5.51% 3. Capital Research 5.30% 4. Columbia Threadneedle 5.27% 5. BlackRock (BGI) 4.63% 6. Legal & General 4.48% 7. Allianz Global 4.10% 8. Old Mutual 3.41% 9. AXA Framlington 3.16% 10. M&G 2.80% As at 31 December 2015 81
Slide 89: Analyst following
ST. JAMES’S PLACE WEALTH MANAGEMENT Analyst following
Slide 90: Analyst following
Analyst following • Lance Burbridge - Autonomous • Andy Hughes - Macquarie • Alan Devlin - Barclays Capital • Jon Hocking - Morgan Stanley • Trevor Moss - Berenberg • David McCann - Numis • Andrew Sinclair - Boa Merrill Lynch • Barrie Cornes - Panmure Gordon • Haley Tam - Citi • Stuart Duncan - Peel
Slide 91: Investor relations contacts
Investor relations contacts If you have a query or require more information, please get in touch with one of the contacts below: Tony Dunk Andrew Croft Director, Investor Relations Chief Financial Officer Telephone: 0207 514 1963 Telephone: 0207 514 1963 Email: tony.dunk@sjp.co.uk Email: andrew.crof
Slide 92: May 2016
May 2016 TWK/Q1/16