Transcription
Investor
ContentsOverview:Businessmodel andstrategyOur businessin detailOur newbusinessperformanceOur financialperformanceAppendix2
Overview: businessmodel &
St. James's Place overviewLeading UK WealthManagement CompanyEstablished 1991UK listed with market capof c. 7 billion 154 billion in FUMCore market: UK massaffluent and high networth individualsDifferentiated advice-ledbusiness modelDedicated adviceled distribution –The PartnershipDistinctive globalinvestment managementapproachWell positioned to benefitfrom long-term marketgrowthFavourable demographictrendsFuture intergenerationaltransfer of wealth4
The market opportunity: rising retail wealthUK aggregate wealth by age cohort30%12 million‘mass affluent’and high net worthindividuals controlling 3.1tnof liquid assets27%24%25%23%20%15%10%10%5%0%10%3%3%0%16 - 2425 - 3435 - 44 45 - 5455 - 6465 - 7475 - 8485 andover87%5
The value of adviceFinancialplanningInvestmentreturnsClient netoutcomesTrustedpersonalrelationship6
The market opportunity: rising demand for adviceFlexibility complexityvia ‘pensionfreedom’TaxcomplexityDecline ofDB pensionsIntergenerationalWealth TransferGrowing UKsavings gapPerfect environmentfor client-focusedadvice business7
The market opportunity: undersupply of adviceNumber of UK retail investment advisersThe UK advice gap is large50,00045,000Only a quarter of UK adultscurrently seek advice40,00035,00030,0003.7 million individuals with 50k of investable assets, are open toadvice but currently unadvised25,00020,00015,00010,0005,000Number of UK financial advisersis not growing012/10 12/11 06/1212/12 07/1301/14 10/14 11/15 12/16 11/17 12/18 12/19 12/20Bank & Building SocietyFinancial AdviserOther8
Our business modelBenefitsAdviceOur clients: an end-to-end,connected proposition focusedon great long-term outcomesVerticalintegrationPlatform &AdministrationInvestmentsOur Partnership: superior supportto build a great business overthe long-termOur shareholders: long-term,sustainable growth in fundsunder management9
Our 2025 strategyWhere we’re goingOur vision‘To support the UK'sleading FinancialAdvisers with the besttechnology, bestoperations and bestproposition for themand their clients’Our 2025 goalsc.10%95%annual growth ingross inflowsannual retentionof client FUM*5% 200bngrowth incontrollableexpensesSignificantgrowth in cashresult andshareholderreturnsFUM*Excluding regular income withdrawals and maturities10
Our business prioritiesBuildingcommunityDelivering valueto clients throughour IMABuilding andprotectingour brand andreputationMaking it easierto do businessOur culture andbeing a leadingresponsiblebusinessContinuedfinancial strength11
Our business in02
The Partnership:fundamental to ourbusiness modelClients868,000 Supporting clientsThe PartnershipBuilding greatbusinesses2,562 4,556PartnerbusinessesFinancialadvisersProposition 154 billionFUMTech13
The Partnership: why do advisers join and stay with SJP?StrongcommercialrelationshipGreat clientoutcomesFlexiblebusinessdevelopmentStrong productsand propositionAttraction andretentionComprehensivecorporate support14
The Partnership: why do advisers join and stay with SJP?Strong adviserretentionValue oflong-termPartnershipsMix of Academyand recruitmentchannelsA sustainablepipeline forgrowth in thePartnershipAverage age46 (lower thanmarket)15
The Partnership: securing tomorrow through our Academy34Average age844Partners andAdvisersdelivered2021Academyrefreshed60%from nonfinancialbackgrounds350new advisersin training atend-20218% of new clientinvestmentsin 202157%referredby thePartnership16
The Partnership: advisers by age bandExisting advisers3%20%New advisers15%11% 3535-4545-551%37%21% 3535-4545-5555-6555-6565 65 29%33%30%17
The Partnership: driving productivityTargetedgrowth anddevelopmentsupportBusinessconsultancyCoaching andleadershipdevelopmentGreat clientoutcomes drivestrong productivity40%of new businessthrough referrals18
The Partnership: investing in our futureNew andimprovedsystemsand techUtilisation ofPartner lending tosupport businessdevelopmentTargeted,data-ledfield managementteam supportMore sharedservicingof clients19
Our clients: snapshot868,000 Clients563%5%Average ageOverseas clients1%21%53%/47%Male/female splitNo ‘typical’ client all want trusted,personal advice13%3%10%4%25%15%15%Geographic distribution of client FUM as at 31/12/2120
Our clients: by age bandExisting clientsNew clients6%23%8%6% 3016%16%19%30-4030-4040-5040-5050-6022%17% 3013%50-6060-7060-7070 70 26%17%21
Our investment propositionStockbrokingDiscretionary FundManagement (DFM) 154bnInvestment ManagementApproach (IMA)22
The Partnership: why do advisers join and stay with SJP?People& TeamInvestmentbeliefsData, Tech& InsightsOur recipefor long-termperformanceInvestorGovernance23
Our investment proposition: our seven beliefs1. Great clientoutcomes2. Assetcollection5. Understandthe risk3. Diversification6. Disciplinedresearch4. Activemanagement6. Responsibleinvestment24
ResponsibleBusinessFrameworkEnable financialwellbeing for our clients,our people and ourcommunitiesFinancialWellbeingLead theconversationon oseCultureClimateChangeTake action onclimate changeStrategic EnablersPeopleResponsible RelationshipsGovernanceRisk ManagementInclusion and DiversityData privacyPolicy influenceHuman RightsClient Satisfaction and retentionResponsible ProcurementCommunityImpactGiving back to supportlocal communities andregenerationCorporate Governance25
Leading the conversation on investing responsiblyResponsible investment as standard- All our managers are UN PRI signatories- RI key to selection and monitoring processacross all funds and strategies- Focus on stewardship and engagementTailored and bespoke RI solutions alsoavailable for clientsMember of Net Zero Asset Owner Alliance- Committed to net zero by 2050- Interim target of 25% reduction in carbonfootprint by 202526
Technology at SJPBluedoorEnabling scalability andefficiency within SJPSalesforceHyper-personalised servicedelivery and efficiencyData &AILeading to a data and AIintegrated ecosystemNext GenerationClient Experience nceReducecomplexityReduceoperational risk27
Our new business
The Partnership5,000The Partnership grew 5%in 2021 to 4,556 advisers4,5004,000Strong pipeline for Academy enrolmentand experienced recruitment3,5003,000350 new advisers in training in theAcademy at 2020202129
Gross inflows: long-term track recordA record year for new business in 2021 20bn- Gross inflows of 18.2 billion, up 27% 18bn- Strong underlying performance 16bn- Also benefiting from excess savings anda more favourable operating environment 14bnStrong start to 2022 with gross inflows of 4.7 billion, maintaining the momentumdeveloped during 2021 12bn 10bn 8bn 6bn 4bn 2bn 0bn2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202130
Building flows to 2025Gross inflows: progressagainst our 2025 plan bn25Growth in new business will not be linearThere will naturally be variations in growthrates from quarter to quarter and yearto year20Great start to 2025 ambitions1510502021Original plan20222023Actual2024Consensus forecasts*2025*Based on 2022 consensus forecasts currently published -analyst-coverage31
Net inflows: long-term track record 12bnRecord year for net inflows, up 34% to 11.0 billion, driven by: 10bn- Strong new business performance 8bn- Exceptional retention of client investments:96% excluding regular withdrawals andmaturities 6bnMaintaining our track record of netinflows in every quarter of every year inour history 4bn 2bn 0bn2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Q1 2022 saw net inflows of 2.9 billion, withretention of client investments very strongat 96.6% (annualised)32
Funds under management bn 15% p.a. compound growth over the last 5, 10 and 15 011201220132014201520162017201820192020202133
Our financial
Strong 2021 financials 401.2m 16.5751.96p 1,545.4mUnderlyingcash result 401.2 million,up 52%EEV NAV per share 16.57, up 14%Full year dividend51.96 pence pershare, up 35%EEV operatingprofit 1,545.4 million,up 68%Robust Solvency II position35
Underlying cash resultUnderlying cash result up 52% to 401.2 million, driven by:- Growth in FUM in both 2020 and 2021 leadingto growth in net income from FUM- Contribution of over 40 million to 2021 netincome from FUM due to maturing FUM- Strength of new business, which bothincreases FUM and delivers positive marginarising on new business- Containing growth in controllable coststo 5% m450 52%400401.2350300250264.72001501005002020202136
FUM in gestation mGestation balance now stands at 49.3 billion450This will contribute over 390 millionper annum to the Cash result from2027 onwards when it all matures350- Using simple modelling which assumes forexample that FUM values remainunchanged and there are no surrendersThis reflects the change in corporationtax from 2023Contribution of gestation FUM to the Cash 7onwards37
EEV NAV per shareEEV NAV per share of 16.57, up 14%over past 12 monthsExcludes additional c. 395 million(or c. 73 pence per share) valueof pensions business falling outsideof current contract boundaries 020202138
DividendsFull year dividends set in line with policyat 70% of the Underlying cash resultFull year dividend of 51.96 pence pershare, growth of 35%Proposal final dividend of 40.41 penceper share39
Longer-term outlookDemand for trusted face to facefinancial advice remains as strongas everSt. James’s Place ideally placed- Academy- Proven investment approach- Modern and scalable infrastructure- Unique culture and refreshed brandRemain confident of achieving our2025 ambitions and continuing toprosper thereafter40
Appendix
Net inflows: long-term track record3.53.02.52.01.51.00.50.0Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 20202021202242
Our Net Zero commitments#1#2#3#4Climatepositive in ouroperationsby 2025Net Zerothroughout oursupply chainby 2035Support ourPartnershipbecoming NetZero by 2035Net Zero inour investmentsby 205043
SJP Asia: the market opportunitySingapore and Hong Kong4.6m300,000people with US 100,000– US 1m to investpeople withUS 1m– US 30m toinvest US 2tntotal asset pool44
SJP Asia: our propositionWho?Expats and high networth Singaporeanand Hong KongNationalsWhat?Why SJP?International familywealth structuringTrusted brand, long-termrelationships and greatclient outcomesWealth extractionfor entrepreneurialfamiliesJoint UK/Asia focusand expertiseLong-term capitalpreservationand investmentIncreasingly Asia-centricfunds and portfolios forlocal markets45
SJP Asia: the 30-year-old disruptorA clear plan to create long-term valuePositioned to target expats andHNW individualsPositioned to target expats andHNW individualsLong-term, advice-led propositionLong-term, advice-led proposition46
Analyst followingAutonomousAndrew CreanKBWCharles BeechingBarclaysLarissa van DeventerMediobancaFahad ChangaziBank of AmericaAndrew SinclairMorgan StanleyLouise MilesBerenbergAdam BarrassNumisDavid McCannCitiAndrew BakerPanmure GordonRae MaileDeutsche BankRhea ShahPeel HuntStuart DuncanExane BNP ParibasGreg SimpsonRBCBen BathurstGoldman SachsAlan DevlinRedburn PartnersCharles BenditHSBCSteven HaywoodShore CapitalAbid HussainJPMorganGurjit KamboUBSNasib Ahmed47
Costs of a full advice service: SJP v UK wealth management peersThe results to the assessment at 31 March 2022:3.5%2.3%1.3%The firm represented by the first bar (Reduction in Yield of 1.3% each year) does not offer an ongoing advice service.The figures shown have been produced by Ernst & Young LLP (‘EY’), an external consultancy. They show the Reduction in Yield each year over a period of 10 years for a 100,000investment into actively managed, unwrapped mutual funds (Unit Trust, OEIC or equivalent) with both initial and ongoing advice. Investment returns of 5% each year havebeen assumed. EY has collated and computed these figures as at 31 March 2022 for use by St. James’s Place and St. James’s Place Partners in conversation with their clients.The information must not be relied upon by any third party in making management or investment decisions.48
Investor relationsCraig GentleChief Financial OfficerEmail: craig.gentle@sjp.co.ukTel: 44 207 514 1963Hugh TaylorInvestor Relations DirectorEmail: hugh.taylor@sjp.co.ukTel: 44 207 514 1963www.sjp.co.uk/shareholders
Leading UK Wealth Management Company Established 1991 UK listed with market cap of c. 7 billion 154 billion in FUM Core market: UK mass affluent and high net . Theinformation must not be relied upon by any third party in making management or investment decisions. 1.3% 3.5% 2.3% The results to the assessment at 31 March 2022: Investor .
