St. James’s Place plc (LON:SJP) has issued an update on new business inflows and funds under management for the year ended 31 December 2022.
| 2022 | 2021 | |
| £’Billion | £’Billion | |
| Gross inflows | 17.03 | 18.20 |
| Net inflows | 9.78 | 11.04 |
| Closing funds under management | 148.37 | 153.99 |
| Funds under management retention rate | 96.5% | 96.4% |
| Net inflows/opening funds under management | 6.4% | 8.5% |
| Number of qualified advisers at close | 4,693 | 4,556 |
Andrew Croft, St. James Place Chief Executive Officer, commented:
“I am pleased to report that our advisers attracted £3.87 billion of new client investments during the final quarter, rounding out another successful year for St. James’s Place with gross inflows for the full year totalling £17.03 billion. Retention of client investments remains very high, reflecting not only their long-term nature, but also the steadying hand of our advisers in difficult markets. This, together with new client investments, resulted in net inflows of £2.05 billion for the quarter and £9.78 billion for the year, or 6.4% of opening funds under management.
Despite significant macroeconomic challenges, which deepened as the year progressed, 2022 marks the second-best year for new business flows in St. James’s Place’s history. This strong outcome is testament to the hard work of everyone in our community and to the enduring resilience of our business, no matter the environment.
2023 has started in much the same way that 2022 ended but it is encouraging to see more recent positive indicators that UK inflation may have peaked, together with some evidence that currency and investment markets are more stable. A sustained recovery in macroeconomic indicators would naturally be conducive towards improving consumer sentiment, activity levels and of course funds under management, as 2023 unfolds.
Longer term, the demand for trusted, face-to-face advice is only getting stronger, so with a growing Partnership and a business in great shape, we continue to be well positioned to capitalise on our market opportunity and deliver against our 2025 ambitions.”
1. Funds under management
| Three months ended 31 December 2022 | Investment £’Billion | Pension £’Billion | UT/ISA and DFM £’Billion | Total £’Billion |
| Opening FUM | 32.54 | 70.67 | 39.93 | 143.14 |
| Gross inflows | 0.55 | 2.34 | 0.98 | 3.87 |
| Net investment return | 0.67 | 1.64 | 0.87 | 3.18 |
| Regular income withdrawals and maturities | (0.07) | (0.43) | – | (0.50) |
| Surrenders and part-surrenders | (0.40) | (0.36) | (0.56) | (1.32) |
| Closing FUM | 33.29 | 73.86 | 41.22 | 148.37 |
| Net inflows | 0.08 | 1.55 | 0.42 | 2.05 |
| Implied surrender rate as a percentage of average FUM | 4.9% | 2.0% | 5.5% | 3.6% |
Included in the table above is:
· Rowan Dartington Group FUM of £3.29 billion at 31 December 2022, gross inflows of £0.11 billion for the quarter and outflows of £0.05 billion.
· SJP Asia FUM of £1.52 billion at 31 December 2022, gross inflows of £0.06 billion for the quarter and outflows of £0.03 billion.
| Three months ended 31 December 2021 | Investment £’Billion | Pension £’Billion | UT/ISA and DFM £’Billion | Total £’Billion |
| Opening FUM | 35.03 | 71.59 | 41.44 | 148.06 |
| Gross inflows | 0.76 | 2.54 | 1.39 | 4.69 |
| Net investment return | 0.60 | 1.54 | 0.88 | 3.02 |
| Regular income withdrawals and maturities | (0.08) | (0.45) | – | (0.53) |
| Surrenders and part-surrenders | (0.36) | (0.39) | (0.50) | (1.25) |
| Closing FUM | 35.95 | 74.83 | 43.21 | 153.99 |
| Net inflows | 0.32 | 1.70 | 0.89 | 2.91 |
| Implied surrender rate as a percentage of average FUM | 4.1% | 2.1% | 4.7% | 3.3% |
Included in the table above is:
· Rowan Dartington Group FUM of £3.52 billion at 31 December 2021, gross inflows of £0.12 billion for the quarter and outflows of £0.03 billion.
· SJP Asia FUM of £1.57 billion at 31 December 2021, gross inflows of £0.10 billion for the quarter and outflows of £0.01 billion.
| Twelve months ended 31 December 2022 | Investment £’Billion | Pension £’Billion | UT/ISA and DFM £’Billion | Total £’Billion |
| Opening FUM | 35.95 | 74.83 | 43.21 | 153.99 |
| Gross inflows | 2.31 | 9.90 | 4.82 | 17.03 |
| Net investment return | (3.15) | (7.68) | (4.57) | (15.40) |
| Regular income withdrawals and maturities | (0.29) | (1.72) | – | (2.01) |
| Surrenders and part-surrenders | (1.53) | (1.47) | (2.24) | (5.24) |
| Closing FUM | 33.29 | 73.86 | 41.22 | 148.37 |
| Net inflows | 0.49 | 6.71 | 2.58 | 9.78 |
| Implied surrender rate as a percentage of average FUM | 4.4% | 2.0% | 5.3% | 3.5% |
Included in the table above is:
· Rowan Dartington Group FUM of £3.29 billion at 31 December 2022, gross inflows of £0.44 billion for the year and outflows of £0.14 billion.
· SJP Asia FUM of £1.52 billion at 31 December 2022, gross inflows of £0.28 billion for year and outflows of £0.10 billion.
| Twelve months ended 31 December 2021 | Investment £’Billion | Pension £’Billion | UT/ISA and DFM £’Billion | Total £’Billion |
| Opening FUM | 32.22 | 61.31 | 35.81 | 129.34 |
| Gross inflows | 2.62 | 9.86 | 5.72 | 18.20 |
| Net investment return | 2.89 | 6.89 | 3.83 | 13.61 |
| Regular income withdrawals and maturities | (0.28) | (1.72) | – | (2.00) |
| Surrenders and part-surrenders | (1.50) | (1.51) | (2.15) | (5.16) |
| Closing FUM | 35.95 | 74.83 | 43.21 | 153.99 |
| Net inflows | 0.84 | 6.63 | 3.57 | 11.04 |
| Implied surrender rate as a percentage of average FUM | 4.4% | 2.2% | 5.4% | 3.6% |
Included in the table above is:
· Rowan Dartington Group FUM of £3.52 billion at 31 December 2021, gross inflows of £0.55 billion for the year and outflows of £0.14 billion.
· SJP Asia FUM of £1.57 billion at 31 December 2021, gross inflows of £0.36 billion for the year and outflows of £0.10 billion.
2. Analysis of funds under management
The table below provides a geographical and investment-type analysis of FUM at 31 December.
| 31 December 2022 £’Billion | 31 December 2022 Percentage of total | 31 December 2021 £’Billion | 31 December 2021 Percentage of total | |
| North American equities | 49.1 | 33% | 47.3 | 31% |
| Fixed income securities | 23.1 | 16% | 25.4 | 16% |
| European equities | 19.3 | 13% | 17.8 | 11% |
| Asia and Pacific equities | 17.8 | 12% | 18.6 | 12% |
| UK equities | 16.0 | 11% | 21.5 | 14% |
| Alternative investments | 12.4 | 8% | 11.9 | 8% |
| Cash | 5.7 | 4% | 5.9 | 4% |
| Other | 2.8 | 2% | 3.0 | 2% |
| Property | 2.2 | 1% | 2.6 | 2% |
| Total | 148.4 | 100% | 154.0 | 100% |
St. James’s Place plc, formerly St. James’s Place Capital plc, is a British investment management company. The head office is in Cirencester, in Gloucestershire, and there are over twenty other offices in the United Kingdom. It is a combined adviser, fund manager and life insurance business.
