# St. James’s Place reports strong New Business performance and increased Funds under Management - Link: https://www.directorstalkinterviews.com/st.jamess-place-reports-strong-new-business-performance-and-increased-funds-under-management/4121139469 - Published: 2024-01-25T07:29:04+00:00 - Author: Amilia Stone **St. James’s Place plc **(LON:STJ) has issued an update on new business inflows and funds under management for the year ended 31 December 2023. | | **2023 ** | 2022  |   | | | **£’Billion ** | £’Billion  |   | | Gross inflows | **15.39 ** | 17.03 | | Net inflows | **5.12 ** | 9.78  | | Closing funds under management | **168.20 ** | 148.37  | | ** ** | ** ** | | | Funds under management retention rate^(1) | **95.3%** | 96.5% | | Net inflows/opening funds under management | **3.5%** | 6.4% | | | ** ** | | | Number of qualified advisers at close | **4,834** | 4,693 | ^(1) Throughout this press release our retention rate is calculated allowing for surrenders and part-surrenders. It excludes regular income withdrawals and maturities. > **Mark FitzPatrick, St James’s Place Chief Executive Officer, commented:** > “I am pleased to report that SJP’s new business performance has remained robust > during the final quarter, with our advisers attracting £3.7 billion of new client > investments to the business. This rounds out a solid year in which we achieved > £15.4 billion of total gross inflows and £5.1 billion of net inflows despite a > difficult industry backdrop. Annual retention rates remain very strong at more > than 95%. > While the need for trusted face-to-face financial advice remains as strong as > ever, client capacity and confidence to commit to long-term investment have been > impacted by the economic environment and short-term alternatives in the form of > cash deposit and savings rates. Outside of SJP funds under management, net flows > into the SJP Cash Deposit Service managed by Flagstone increased significantly > during 2023, with client deposit balances now totalling £3.9 billion (31 December > 2022: £2.5 billion). > Our IMA performed very well during 2023, delivering strong investment returns > relative to peers for the benefit of our clients. This, combined with ongoing > net inflows, has driven funds under management to a record £168.2 billion. > As we build on the strong foundations we have established over three decades, > we continue to see a huge opportunity to support more clients who need help and > advice. I want SJP to capture this long-term opportunity, so as we start planning > our vision for 2030 I am reviewing all elements of our business to ensure we are > fully fit for the future and best placed to keep delivering for all our stakeholders.” **1. Funds under management** | **Three months ended 31 December 2023** | **Investment ** | **Pension ** | **UT/ISA and **** DFM ** | **Total ** | | **£’Billion ** | **£’Billion ** | **£’Billion ** | **£’Billion ** | | Opening FUM | **34.43 ** | **81.31 ** | **42.83 ** | **158.57 ** | | Gross inflows | **0.48 ** | **2.46 ** | **0.73 ** | **3.67 ** | | Net investment return | **1.67 ** | **4.87 ** | **2.32** | **8.86 ** | | Regular income withdrawals and maturities | **(0.08)** | **(0.70)** | **– ** | **(0.78)** | | Surrenders and part-surrenders | **(0.51)** | **(0.62)** | **(0.99)** | **(2.12)** | | **Closing FUM** | **35.99 ** | **87.32 ** | **44.89 ** | **168.20 ** | | **Net inflows/(outflows)** | **(0.11)** | **1.14 ** | **(0.26)** | **0.77 ** | | **Implied surrender rate as a percentage of average FUM** | **5.8% ** | **2.9%** | **9.0%** | **5.2****%** | Included in the table above is: ·      Rowan Dartington Group FUM of £3.43 billion at 31 December 2023, gross inflows of £0.07 billion for the quarter and outflows of £0.04 billion. ·      SJP Asia FUM of £1.72 billion at 31 December 2023, gross inflows of £0.06 billion for the quarter and outflows of £0.05 billion. | Three months ended 31 December 2022 | Investment  | Pension  | UT/ISA and  DFM  | Total  | | £’Billion  | £’Billion  | £’Billion  | £’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. **-3-** | **Twelve months ended 31 December 2023** | **Investment ** | **Pension ** | **UT/ISA and **** DFM ** | **Total ** | | **£’Billion ** | **£’Billion ** | **£’Billion ** | **£’Billion ** | | Opening FUM | **33.29 ** | **73.86 ** | **41.22 ** | **148.37 ** | | Gross inflows | **2.09 ** | **9.77 ** | **3.53 ** | **15.39 ** | | Net investment return | **2.89 ** | **8.23 ** | **3.59 ** | **14.71 ** | | Regular income withdrawals and maturities | **(0.36)** | **(2.41)** | **– ** | **(2.77)** | | Surrenders and part-surrenders | **(1.92)** | **(2.13)** | **(3.45)** | **(7.50)** | | **Closing FUM** | **35.99 ** | **87.32 ** | **44.89 ** | **168.20 ** | | **Net inflows/(outflows)** | **(0.19)** | **5.23 ** | **0.08 ** | **5.12 ** | | **Implied surrender rate as a percentage of average FUM** | **5.5%** | **2.6%** | **8.0%** | **4.7****%** | Included in the table above is: ·      Rowan Dartington Group FUM of £3.43 billion at 31 December 2023, gross inflows of £0.36 billion for the year and outflows of £0.18 billion. ·      SJP Asia FUM of £1.72 billion at 31 December 2023, gross inflows of £0.21 billion for the year and outflows of £0.15 billion. | Twelve months ended 31 December 2022 | Investment  | Pension  | UT/ISA and  DFM  | Total  | | £’Billion  | £’Billion  | £’Billion  | £’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. ·      St James’s Place Asia FUM of £1.52 billion at 31 December 2022, gross inflows of £0.28 billion for the year and outflows of £0.10 billion. **-4-** **2. Analysis of funds under management** The table below provides a geographical and investment-type analysis of FUM at 31 December. | | **31 December 2023** | 31 December 2022 | | **£’Billion ** | **Percentage of total** | £’Billion  | Percentage of total | | North American equities | **57.4 ** | **34%** | 49.1  | 33% | | Fixed income securities | **27.1 ** | **16%** | 23.1  | 16% | | European equities | **23.6 ** | **14%** | 19.3  | 13% | | Asia and Pacific equities | **20.5 ** | **12%** | 17.8  | 12% | | UK equities | **16.0 ** | **10%** | 16.0  | 11% | | Alternative investments | **10.5 ** | **6%** | 12.4  | 8% | | Cash | **7.2 ** | **4%** | 5.7  | 4% | | Other | **4.1 ** | **3%** | 2.8  | 2% | | Property | **1.8 ** | **1%** | 2.2  | 1% | | **Total** | **168.2 ** | **100%** | 148.4  | 100% | Share on: