St. James's Place Plc · LSE:STJ
St. James's Place — Investor Presentation (February 2025)
47 slides from St. James's Place's investor presentation, Feb 27, 2025
Slide 1: St. James's Place Investor Pack
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Slide 2: SJP – positioning for further success
SJP – positioning for further success Established Positioned to Sustainable Well-placed for Highly cash market leader benefit from and effective earnings growth generative, operating with structural market asset gathering as we deliver supporting growth scale advantage growth model scale operating a
Slide 3: Contents
Contents Overview: Market Our business Our new Appendix business opportunity in detail business and model and financial strategy performance 3
Slide 4: Overview: business model & strategy
Overview: busi model & $ aa VX. SJP
Slide 5: Our business model
Our business model Benefits Our clients: great outcomes for our 1 million+ clients delivered by combining financial advice with our distinct investment management approach Our Partnership: 4,920 highly qualified advisers, the largest professional financial adviser community in the UK Our shareholder
Slide 6: Our strategy
6 Our strategy OUR PURPOSE To empower clients with invaluable advice to realise bolder ambitions OUR STRATEGIC FOCUS AREAS Differentiated Leading Performance Brilliant Client Adviser Focused Basics Proposition Offering Organisation Simplify and standardise Drive empowerment, Enhance our client Conti
Slide 7: Brilliant Basics
7 Brilliant Basics What this means: We will simplify and standardise our operations, sharpening focus on delivering excellent client outcomes Initial priority areas 1 2 3 Leverage data to Drive awareness Drive standardisation provide enhanced of financial advice and simplification analytics, support
Slide 8: Differentiated Client Proposition
8 Differentiated Client Proposition What this means: We will enhance our client proposition, providing a quality offering across differing client segments Initial priority areas 1 2 3 Continue to broaden Develop our digital Enhance the our investment shelf channels, improving experience we provide t
Slide 9: Leading Adviser Offering
9 Leading Adviser Offering What this means: We will continue to be the best place to be a financial adviser in the UK, setting the standard for the future of financial advice Initial priority areas 1 2 3 Continue to refine our Continue to provide Evolve our Partnership Academy programme, a market le
Slide 10: Performance Focused Organisation
10 Performance Focused Organisation What this means: We will foster empowerment and accountability, evolving our culture and driving performance across our community Initial priority areas 1 2 3 Embed high performance Maintain a disciplined Optimise our cost base into our culture by driving approach
Slide 11: Market opportunity
Market opportunity SJP
Slide 12: The £3.3 trillion UK wealth management market: growing across all segments
The £3.3 trillion UK wealth management market: growing across all segments UK wealth market: by AUM segment UK wealth market: forecast development of AUM 2018-2030 2018-2030 Forecast Forecast £tn £tn 6 6 5 5 4 4 3 3 2 2 1 1 0 0 2018 2023 2030 2018 Outflows 2023 Outflows 2030 AUM AUM AUM Gross Asset
Slide 13: The market opportunity: rising demand for advice
The market opportunity: rising demand for advice Plethora of ‘Pension information and freedoms’ Intergenerational products flexibility wealth available transfer Perfect environment for client-focused Complexity of Growing UK pension and advice and advice business taxation rules savings gap 13
Slide 14: Our business in detail
Our business ity ai / SJP
Slide 15: The Partnership: why do advisers join and stay with SJP?
The Partnership: why do advisers join and stay with SJP? Strong Great client Strong products outcomes commercial and proposition Attraction and relationship retention Flexible business Comprehensive development corporate support 15
Slide 16: The Partnership: sustaining long-term growth
The Partnership: sustaining long-term growth Strong adviser retention Value of A sustainable long-term Mix of Academy pipeline for and recruitment Partnerships channels growth in the Partnership Average age 46 (lower than IFA market average of 58) Data as at 31 December 2024 16
Slide 17: The Partnership: securing tomorrow through our Academy
The Partnership: securing tomorrow through our 37 Average age Enables long-term client relationships; increases attractiveness to younger clients Academy +20% Proportion of Partnership trained by the Academy Refreshing our Partnership 34% Female advisers Contributes to Partnership diversity, support
Slide 18: The Partnership: advisers by age band
The Partnership: advisers by age band Existing advisers New advisers 5% 2% 17% 10% <35 <35 35-45 35-45 24% 45-55 18% 45-55 55-65 55-65 65+ 65+ 42% 25% 29% 28% 18 Data as at 31 December 2024
Slide 19: The Partnership
The Partnership 4,920 highly qualified advisers Penetration throughout the UK, the largest professional financial adviser community Great client 2,681 independently run Partner practices outcomes drive Entrepreneurial, motivated, nimble strong productivity Superior technical support and adviser qual
Slide 20: The Partnership: investing in our future
20 The Partnership: investing in our future New and Utilisation of improved Partner lending to systems support business and tech development Targeted, data-led More shared field management servicing team support of clients
Slide 21: Our clients: snapshot
Our clients: snapshot 1 million+ 57 2% 6% Clients Average age Overseas clients 1% 54%/46% No ‘typical’ client - all want trusted, personal advice 3% 13% Male/female split 4% 15% 25% 10% Data as at 31 December 2024 21
Slide 22: Our clients: by age band
Our clients: by age band Existing clients New clients 8% 7% 15% 25% 6% <30 <30 19% 30-40 30-40 12% 40-50 40-50 15% 50-60 50-60 60-70 60-70 70+ 70+ 25% 24% 25% 19% Data as at 31 December 2024 22
Slide 23: Responsible Business Framework
Responsible Business Enhancing financial wellbeing for our clients, our people and our Framework communities Financial wellbeing Considering relevant ESG factors throughout our investment process, and engagement with Vision fund managers Purpose Culture Investing Climate responsibly change Taking ac
Slide 24: Technology at SJP
Technology at SJP Bluedoor Salesforce Data & AI Modern back-office Central customer Rich data universe £’bn administration system relationship management Data and AI integrated Enabling scalability and (CRM) system ecosystem efficiency within SJP Hyper-personalised service delivery and e
Slide 25: Our new business and financial performance
Our new business and financial
Slide 26: Net inflows: long-term track record
Net inflows: long-term track record £bn Challenging macroeconomic 3.5 and geopolitical environment in 2024, but our business was very 3.0 resilient: 2.5 Gross inflows of £18.4 billion Net inflows of £4.3 billion 2.0 Retention remained strong 1.5 at 94.5% excluding regular withdrawals and matur
Slide 27: Funds under management
Funds under management £bn >10% p.a. compound growth over the last 5, 10 and 15 years 200 180 160 140 120 100 80 60 40 20 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Data as at 31 December 2024 27
Slide 28: Robust 2024 financials
Robust 2024 financials £223.6m £447.2m £16.25 18p Total shareholder Underlying cash EEV NAV per share, Full year dividend returns, equivalent result, up 14% on up 15% since per share, in line to 50% of the 2023 31 December 2023 with guidance Underlying cash result Robust Solvency II position Data as
Slide 29: Underlying post-tax cash result of £447.2m
Underlying post-tax cash result of £447.2m Underlying post-tax cash result ◆ Increased 27% on 2023 excluding £m short-term charge structure 900 implementation costs 800 Up 27% ◆ Including these costs, 2024 117.4 700 Underlying post-tax cash result 291.7 Up 14% 14% higher YoY 600 2.6 500 59.5 400 Net
Slide 30: Cash result: other lines
Cash result: other lines Reduced investment in Asia following prior year restructuring £’million 2024 2023 Reduced investment in DFM through disciplined expense Net investment in Asia (10.2) (19.4) control Net investment in DFM (2.4) (6.4) FSCS levy remained low in 2024 as it was in 2023, due to a s
Slide 31: Financial business model
Financial business model Key profit drivers are annual product management Gross inflows for most Gross inflows for unit charges on FUM investment bond and trust, ISA and DFM pension business 6 business As FUM grows, these charges years grow Complicated under our current charging structure by B
Slide 32: Highly cash generative: Gestation
Highly cash generative: Gestation £683.6m £388.1m Additional income Additional income 2018 net income Investment Lapses Other 2024 net income from maturing from new business not from FUM return from FUM gestation FUM going into gestation Waterfall gives an illustration of the growth drivers The bigg
Slide 33: Powerful picture of income growth
Powerful picture of income growth Gestation New charging FUM at point of structure where charging structure we benefit from all £50.1bn of gestation FUM at charges applying transition 31 December 2024 from day 1 ◆ Will mature over the next 6 years ◆ Once all mature, could generate around £290m addit
Slide 34: EEV NAV per share
EEV NAV per share £ 18 EEV NAV per share of £16.25, up 16 15% since 31 December 2023 14 12 Excludes additional c.£279 10 million (or c.51 pence per share) 8 value of pensions business falling outside of current 6 contract boundaries 4 2 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 35: Shareholder returns
35 Shareholder returns Shareholder distribution guidance for 2024 shareholder returns: the years 2024, 2025 and 2026 set at Full year dividends of 18.00 50% of the Underlying cash result. pence per share Annual distributions expected to comprise: Interim buy-back of £32.9 million and final
Slide 36: Appendix
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Slide 37: Our ESG commitments
Our ESG commitments Inclusion and diversity 40% female representation in senior roles by 2028 12% minority ethnic representation in our core employee base by 2028 10% minority ethnic representation across our Group Executive Committee and their direct reports by 2027 Net Zero by 2050 37
Slide 38: Investing our clients' money responsibly
38 Investing our clients’ money responsibly Responsible investment is embedded across our funds. Our 3-step process: 1. All fund managers must be PRI signatories 2. Monitor managers’ approach and work with them to improve 3. Use ESG data to monitor manager investments We’re a member of the Net-Z
Slide 39: Global investment management expertise
Global investment management expertise 39
Slide 40: Business Sale and Purchase (BSP) scheme
Business Sale and Advisers can realise the value of their businesses through our Purchase (BSP) scheme succession proposition Stakeholder benefits of the scheme: ◆ Supports the delivery of good client outcomes as they receive continuity of service within the SJP ecosystem ◆ Makes SJP a great place f
Slide 41: Funding our business loans to Partners
Funding our business loans to Partners ◆ We originate and initially underwrite all loans Loan book funding at 31 December 2024 100% ◆ Over time we have successfully diversified loan funding ◆ Loan sales 43% ◆ Non-recourse securitisation ◆ External funding facilities direct to Partners 19% Nearly 60%
Slide 42: Our simple, comparable charging structure
Our simple, comparable charging structure Initial charges Ongoing charges Ongoing charges The same across all ISAs and unit trusts Investment bonds and products pensions 1.59% 1.67% 1 – 3% 0.80% 0.80% 1 1 0.52% Tiered based on 0.52% investment size and with flexibility in certain 0.27% 2 0.35% 2 cir
Slide 43: Our simple, comparable charging structure
Our simple, comparable charging structure Initial advice charge tiering: Ongoing product charge tiering: Initial advice Investment bonds and Ongoing product Consolidated case size charge pensions charge First £250k 3% First £500k 0.35% Next £250k 2% Next £500k 0.32% Amount over £500k 1% Next £1m 0.2
Slide 44: Costs of a full advice service: SJP current charging structure v UK wealth management peers
Costs of a full advice service: SJP current charging structure v UK wealth management peers The results to the assessment at 30 September 2023: 3.2% 2.1% 2.2% The figures shown have been produced by Ernst & Young LLP (‘EY’), an external consultancy. They show the Reduction in Yield each year over a
Slide 45: Polaris - Cumulative Performance
Polaris 1 - Cumulative Performance Polaris 2 - Cumulative Performance (Unit Trust/ISA) (Unit Trust/ISA) Polaris: the UK’s 20% 25% fastest growing 15% 20% multi-asset fund 15% 10% 10% range 5% 5% 0% 0% -5% -5% £60.5bn Total Polaris FUM Polaris 1 ARC Sterling Cautious PCI Polaris 2 ARC Sterling Balanc
Slide 46: Analyst following
46 Analyst following Autonomous - Andrew Crean Exane BNP Paribas – Greg Simpson Peel Hunt – Stuart Duncan Barclays – Larissa Van Deventer HSBC – Steven Haywood RBC – Ben Bathurst Bank of America – Andrew Sinclair Jefferies – Julian Roberts Redburn - Charles Bendit Citi – Andy Lowe JP Morgan – Enrico
Slide 47: Investor relations
Investor relations Caroline Waddington Hugh Taylor Chief Financial Officer Investor Relations Director Email: cfooffice@sjp.co.uk Email: hugh.taylor@sjp.co.uk www.sjp.co.uk/shareholders
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