1
PART ONE – Business Model
• Strategy 2
• The Partnership 12• The Academy 17• Investment Management
19• Our Clients 31• Our Market 37
• Cash & Dividend Profile 67• Our Shareholders
76• Analysts following 78
PART TWO – Financial Results
3
St. James’s Place: Overview
• Leading UK Wealth Management Company– Established 1991– UK listed with market cap of c. £4 billion– £44.3 billion in FUM– Target market £50k to £5 million free investable
assets
• Differentiated business model– Provider and distributor– Own dedicated distribution – the Partnership– Distinct investment management approach
• Well positioned to benefit from long-term market growth– Favourable demographic trend– Increasing tax burden
5
Whole of Market approachWe take responsibility for the due diligence on all the products and companies we
make available to our clients.
6
• Comprehensive range– of pension, investment and savings “wrappers”– of investment funds managed by global
investment managers– access to “whole of market” for third party
products and services e.g. protection and annuities
• Whilst avoiding– capital intensive products– guarantees and options – overly complex, fashionable or high risk
structures
Our products and services
7
The Growth Model
Target: 15-20% pa
NEW BUSINESS
CAPACITY Number of Partners
PRODUCTIVITY New business per
Partner
8
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2009 2010 2011 2012 2013
Num
ber o
f Par
tner
s
Growing number of Partners
+9%+6% +6%
+9.5%+8%
1,958
9
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2009 2010 2011 2012 2013
£ m
illio
n
Productivity (single investment per Partner)
+2%
+28%
+3%
+12%+5%
3.83
10
1.21.6
2.63.4 3.1
3.5
4.75.2
5.9
7.2
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
£ bi
llion
Single premium gross investments
11
0
5
10
15
20
25
30
35
40
45
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fund
s £ b
illio
n
Funds under management22 % p.a. compound growth over the last 5 years and 19% p.a. over last
10 years
+20%
+25%+29
%
+18%
-10%
+31%
+26% +6%
44.3+22%
+27%
13
Dedicated distribution – the Partnership
• High quality self-employed team of c.2000 advisers– Average age is 48– Above average productivity– 90%+ per annum retention rate
• Aim to grow Partner number by 5% to 7% per annum
• Aim to increase productivity each year
15
Partners by age band31 December 2013
Existing Partners
55-6519%
65+2%
<356% 35-45
31%
45-5542%
New Partners
45-5526%
55-658%
65+0%
<3520%
35-4546%
18
The Academy
• 60 new students in 2013• 40 next generation
• Targeting another 50-60 this year• Anticipate c.50 to ‘graduate’ this year• Plus a new regional initiative in
Manchester
20
Our approach to investment management
THE INVESTME
NT COMMITT
EE
Appoint the Fund
Managers
Set performance
objectives
Risk management and strategy
Decisions: Change firm?
Change manager? No
change?
‘MANAGES THE MANAGERS’
‘INDEPENDENT EXPERTISE’
VivianBazalge
tte
SarahBates
PeterDunsco
mbe
WinRobbins
21
Stamford Associates Independent Investment Consultancy
Research Fund Manager Market
Analyse & identify talented managers
Gather intelligence
Access to Whole Market
Monitor Managers and
Portfolios
Qualitative and Quantitative
Number crunching
Monitor activity
Behavioural psychology
Workplace analysis
Advise Investment Committee
Focus on Future Outperformance
Recommend:
Potential changes
New managers
26
0
5
10
15
20
25
30
35
40
45
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Fund
s £ b
illio
n
Funds under management22 % p.a. compound growth over the last 5 years and 19% p.a. over last
10 years
+20%
+25%+29
%
+18%
-10%
+31%
+26% +6%
44.3+22%
+27%
42%
23%38%
46%
26%17%
25% 23%
58%
77%62%
54%
74%83%
75% 77%89% 89%
11%11%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
27
Below peer group average Above peer group average
Weighted 5-year Rolling Performanceto 31 December 2013 (excluding Money Market & Alternative Assets)
Past performance is not indicative of future performance. The value of an investment with St. James’s Place can fall as well as rise. You may get back less than the amount invested.
30%14% 14% 16% 17% 10% 10% 10% 10%
2%
70%86% 86% 84% 83% 90% 90% 90% 90%
98%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
28
Below peer group average Above peer group average
Weighted 10-year Rolling Performanceto 31 December 2013 (excluding Money Market & Alternative Assets)
Past performance is not indicative of future performance. The value of an investment with St. James’s Place can fall as well as rise. You may get back less than the amount invested.
29
Funds Under Management: shown by Asset Class and Region
31 December 2013
UK 30%
Property2% PABs / FABs
2% Cash & Other Assets 10%European
11%
US 19%
Far East 9%Fixed Interest
14%
Alternatives3%
30
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 – reduced churn
• Free switching for clients
• Significantly improved retention of funds
32
Geographic distribution of our clients31 December 2013
420,000 clients
Male 53%
Female 47%
Average age 53
33
Clients and FUM Clients by value band31 December 2013
All clients All clients - FUM
£250k-£500k
7%
£1m+ 1%
<£50k54%
£50k- £250k36%
£500k-£1m 2%
£250k-£500k 21%
£1m+ 16%
<£50k9%
£50k- £250k38%
£500k-£1m 16%
34
New and retained clients by age band 31 December 2013
Existing clients by age band
New clients by age band
70+18%
<303% 30-40
9%
40-5026%
50-5513%
55-6011%
60-6510%
65-7010%
70+14%
<308% 30-40
10%
40-5019%50-55
13%55-6012%
60-6512%
65-7012%
35
What our clients think
The key findings were:
• 84%* of clients highly satisfied with their relationship with St. James’s Place – nearly a third scoring us 10 out of 10
• 88%** of clients ‘value’ a face-to-face relationship with their Partner
• 86%* of clients agreed that we provide excellent service
• 80%* of clients highly satisfied in the way in which we communicate with them
• 96%** of clients were likely to recommend St. James’s Place to others
• 81%* of clients would invest with St. James’s Place again if making that decision today* Scoring 8 or more out of 10. Ledbury Research – November/December 2013** Wealth Account Survey, January 2014
38
Our market
• The market is big
• Favourable demographics
• The tax burden is increasing
• UK high net worth individuals want face-to-face advice
• Limited access to advice as adviser numbers have reduced
40
10,743,472
9,482,4009,108,8009,927,000 10,345,700
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2014 2015 2016 2017 2018
Year
Num
ber o
f ind
ivid
uals
The SJP MarketplaceUK individuals with between £50k and £5m of liquid assets
Source: Datamonitor, 23 January 2014
41
2,0821,9821,885
1,717 1,797
0
500
1000
1500
2000
2500
2014 2015 2016 2017 2018Year
€ bi
llio
n
The SJP MarketplaceAmount of liquid assets held by UK individuals with between
£50k and £5m
Source: Datamonitor, 23 January 2014
42
UK Funds under managementFunds £billion
Private Clients£483
Property£142
Hedge£217
Corporate Pensions £1,597
Insurance Companies £994
Retail Clients £760
Private Equity£112
The City UK Fund Management report 2012 – figures relate to 31 December 2011.
Insurance & Corporate Pensions relate to institutional clients.
2013 Rank
2012
Rank
CompanyAUM end
2012 (£bn)
Change v 2011 (£bn)
Share (of top
40)
1st 2nd Coutts 51.7 1.9 (4%) 10.9%
2nd 1st Barclays 50.2 0.4 (1%) 10.6%
3rd 6th St. James’s Place Wealth Management 44.3* 9.5 (27%)* 7.3%*
4th 3rd UBS Wealth Management 27.0 0.8 (3%) 5.7%
5th 8th Brewin Dolphin Limited 26.0 2.0 (8%) 5.5%
6th 7th Hargreaves Lansdown 25.8 1.8 (8%) 5.4%
7th 4th HSBC 24.7 0.6 (3%) 5.2%
8th 8th Rathbones 16.7 1.9 (13%) 3.5%
9th - Citi Private Bank 15.3 - 3.2%
10th 10th Lloyds TSB Private Bank 13.9 1.3 (10%) 2.9%
14th 14th JP Morgan Private Bank 11.5 1.8 (19%) 2.4%
27th 25th Towry 4.8 0.3 (6%) 1.0%
Top 10 Companies 286.2 17.0 (6%) 60%
Top 40 Companies 457.9 40.4 (9%) -
Private Asset & Wealth ManagersTop 10 and selected others
43Source: 2013 PAM Directory
*31/12/2013
44
Asia
The Opportunity
•Singapore, Hong Kong and Shanghai
•Henley Group has 50 advisers with 4,000 clients and £430 million FUM
•Estimated 120,000 UK ex-pats with £12 billion of investible wealth (£100k each)
•Project to grow to over £20 billion by 2020
•Our investment proposition and relationship based approach is well suited to this market
45
Partner Survey 2013 – 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% acquired new clients due to decline of high street advice (banks)
The SJP Opportunity
• ISAs
– Cash– Stocks & shares
• Building Society (Mutual Lender) deposits
• National Savings and Investment (NS&I) deposits
• Bank deposits
• Mutual funds
£220 bn (Sept 2013 – HMRC)
£223 bn (Sept 2013 – HMRC)
£258 bn (Nov 2013 – Building
Societies Association)
£105 bn (Nov 2013 – Building
Societies Association)
£864 bn (Nov 2013 – Building Societies Association)
£763 bn (Nov 2013 – IMA)
46
47
Advice
Initial advice fee
% of initial investment
ORHourly rate (£)
Tiered fee based on amount invested + VAT
Rate may depend on seniority of adviser
Ongoing advice fee
% of Funds Under Management
ORHourly rate (£)
Tiered fee based on fund value
Rate may depend on seniority of adviser
Administration fee
% of Funds Under Management
ORPrescribed fees (£)
Amount based on fund value
Amount may depend on activity
Platform / Admin
Annual charge (%) Tiered fee based on fund value
Account fee (£) Amount will depend on platform provider
Transaction chargePrescribed fees
OR% of transaction
Amount per transaction
Tiered fee based on transaction size
Insurance Company
Wrapper charges Amount based on fund value
Administration fee Amount will depend on insurance company
Fund Management
Annual Management charges (%)
Amount based on value of funds under management
Additional Miscellaneous Costs
Amount based on value of funds under management
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.
The advice market – transparent?
Advisory/Discretionary Managers
Total bps
St. James’s Place (20yr holding period)
195
Hargreaves PMS 210
St. James’s Place (6yr holding period)
219
Raymond James 226
Brewin Dolphin Discretionary (fee only)
231
Rathbones Discretionary 278
Towry (6yr holding period) 305
St. James’s Place (3yr holding period)
312
Killik & Co Discretionary 318
Barclays Wealth (3yr holding period)
322
Towry (3yr holding period) 330
Investec PMS 349
Coutts (20yr holding period) 350
Coutts (6yr holding period) 362
Advisory/Discretionary Charge Comparison
48
Total Investment £85k
UT/ISA £35k Pension £50k
Source: Numis
Advisory/Discretionary managers
Total bps
Raymond James 180
St. James’s Place (20yr holding period)
195
Rathbones Discretionary 203
Hargreaves PMS 210
St. James’s Place (6yr holding period)
229
Brewin Dolphin Discretionary (fee only)
231
Coutts (3yr holding period) 235
Coutts (6yr holding period) 247
Coutts (20yr holding period) 263
Investec PMS 275
Barclays Wealth (20yr holding period)
275
Towry (6yr & 20yr holding period) 282/299
Killik & Co Discretionary 318
Advisory/Discretionary Charge Comparison
49
Total Investment £212k
UT £100kISA £12k
Pension £100k
Source: Numis
50
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
51
123.7
143.4
122.1
141.3143.9
167.1
138.5134.4136.7
163.7
144.6
192.2
170.6
203.3
179.9
209.1
60
80
100
120
140
160
180
200
220
Q1 Q2 Q3 Q4
2010
2011
2012
2013
2010 over 2009 +48% +46% +28% +15%
2011 over 2010 +16% +17% +13% -5%
2012 over 2011 -5% -2% +4% +43%
2013 over 2012 +25% +24% +24% +9%
Total new business by quarterAPE (Annual premiums plus 10% of single premiums)
£m
52
New business
• Total single investments of £7.2 billion – up 22%• SJP new business on an APE basis of £762.9 million – up
20%• Our own business represents 88% of the total
Funds under management
• Net inflow of funds under management of £4.3 Billion – up 28%
• Continue to retain 95% year on year• Funds under management of £44.3 billion – up 27% over
the year
53
Partnership
• Partnership numbers 1,958 - up 9.5%
Profits
• EEV new business profit £327.2 million – up 18%• EEV operating profit £462.7 million – up 26%• IFRS operating profit before shareholder tax
£190.7 million – up 42%
Other financials
• EEV net asset value of 575.3 pence per share – up 25%
• Total cash result of £168.8 million – up 84%• Full year dividend of 15.96 pence – up 50%
54
0
1
2
3
4
5
6
7
8
2009 2010 2011 2012 2013
£billion
Record single investments
+26%
+13%+11%
7.2
+22%
55
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2009 2010 2011 2012 2013
£billion
Consistent net inflow of funds under management
+31%
+26%
+4%+10% 4.3
+28%
56
0
5
10
15
20
25
30
35
40
45
2009 2010 2011 2012 2013
£bill
ion
Funds under management22%p.a. compound growth over the last 5 years
44.3
+31%
+26%
+10%
+22%
+27%
57
Fund flow information
£ billion 31 Dec 2013 31 Dec 2012
FUM at start 34.8 28.5New money invested 6.8 5.6Investment return (Stock market fall) 5.2 3.0
46.8 37.1
Regular income withdrawals/maturities (0.7) (0.7)Surrenders/part surrenders (1.8) (1.6)FUM at close 44.3 34.8
Net inflow of FUM 4.30bn 3.35bn
Implied surrender rate as % of 4.7% 4.9%average FUM
58
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2009 2010 2011 2012 2013
Num
ber o
f Par
tner
s
Five strong years of Partner recruitment
+9%+6% +6%
+9.5%+8%
1,958
59
0
0.5
1
1.5
2
2.5
3
3.5
4
2009 2010 2011 2012 2013
£million
Productivity (single investment per Partner)
+2%
+28%
+3%
+12%+5%
3.83
60
0
50
100
150
200
250
300
350
2009 2010 2011 2012 2013
£million
Record EEV new business profit
+26%
+40%
+13%
+16%
+13%327.2
61
Analysis of EEV life, pension & unit trust pre-tax operating profit
£ million 31 Dec 2013 31 Dec 2012
New business contribution 327.2 276.8
Profits from existing business– expected 112.1
96.0– experience variance 47.4
4.6– operating assumption charges 4.6
(4.3)
Investment income 5.2 3.4
Operating profit 496.5 376.5
62
Pre-tax EEV profit
£ million 31 Dec 2013 31 Dec 2012
Life, pension & unit trust 496.5 376.5
Distribution (6.1) 5.3Other operations (27.7) (15.9)
Total operating profit 462.7 365.9
Investment variance 344.2 190.4Economic changes 10.6 (3.7)
Pre-tax result 817.5 552.6
63
0
100
200
300
400
500
2009 2010 2011 2012 2013
£million
2013 EEV operating profit
+12%
+45%
+12%
+26%
-2% 462.7
64
Pre-tax IFRS profit before shareholder tax
£ million 31 Dec 2013 31 Dec 2012
Life 170.6 111.7
Unit Trust 53.9 33.5
Distribution (6.1) 5.3
Other operations (27.7) (15.9)
Profit before shareholder tax 190.7 134.6
65
Capital position as at 31 December 2013 Other
£ million Life regulated Other Total
Solvency position
Solvency net assets 384.2 38.9 184.5 507.6
Solvency requirement 49.3 17.1
Solvency ratio 576% 227%
66
Group expenses
£ million 31 Dec 2013 31 Dec 2012Paid from policy marginsPartner remuneration 407.1 307.0Investment expenses 101.8 89.4Third party administration 37.7 32.6
546.6 429.6Direct expensesOther new business related costs 69.0 59.5Establishment expenses 113.4 100.2Academy costs 2.7 1.9Other development costs 8.5 4.6Back office infrastructure costs 5.0 -Regulatory fees 11.6 12.0Regulatory change costs 3.1 6.0Contribution from third party product sales (20.4) (21.4)
192.9 162.8 739.5 591.8
68
0
20
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012 2013
£ m
illion
Underlying post-tax cash arising from inforce business
-3%+15%
+23%
188.2+15%
+30%
144.5125.4
102.388.8
Return on inforce
• Where product structure uses penalties the business is cash neutral in first six years
69
• This relates to £13.2 billion of new business added in last six years which is not yet generating positive cash earnings*
• This amounts to £102 million of post-tax cash earnings per annum in future*
*Ignores stock net movements and outflows
Year £billion
2008 1.4
2009 1.6
2010 2.1
2011 2.2
2012 2.4
2013 3.5
Total 13.2*
71
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
£ bi
llion
Underlying post-tax cash result
New investments with surrender penalties
£1.6bn
£3.4bn £3.5bn
£5.2bn
£7.2bn
£1.2bn
£2.6bn£3.1bn
£4.7bn
£5.9bn
71
65.3 61.4 62.4 60.5 48.30
20
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012 2013
£ m
illion
Underlying post-tax cash result
Investment in new business
72
Post-tax new business cost (£m)*
Post-tax EEV new business profit (£m)
Margin (% of manufactured APE)
IRR (net of tax)
Cash payback period
As % of gross inflows of FUM
31 Dec 2013 31 Dec 2012
(52.3) (60.5)
261.8 218.3
42.9% 43.4%
28.4% 22.5%
4 years 4 years
0.8% 1.1%
Investment in new business
*2013 – includes negative £4 million variance
73
23.540.9
63.084.0
139.9
0
20
40
60
80
100
120
140
160
180
200
2009 2010 2011 2012 2013
£ m
illion
Underlying post-tax cash result
+67%
Investment in new business
74
0
2
4
6
8
10
12
14
16
2006 2007 2008 2009 2010 2011 2012 2013
Penc
e
Continual dividend growth
+16%
+18%
+2%+33%
+2.5%
+33%
+33%
*
15.96
+50%
75
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
77
Our shareholders
1. Threadneedle 5.28%
2. Baillie Gifford 4.99%3. M&G 4.07%4. Kames Capital
3.68%5. AXA Framlington 3.41%6. Legal & General 3.09%7. Schroder 2.74%8. Old Mutual 2.67%9. BlackRock (BGI) 2.24%10. Wellington 1.90%As at 30 December 2013
79
Analyst following
• Alan Devlin - Barclays Capital
• Matthew Preston - Berenberg
• Andrew Sinclair - BoA Merrill Lynch
• Chris Esson - Credit Suisse
• Oliver Steel - Deutsche Bank
• Ravi Tanna - Goldman Sachs
• Ashik Musaddi - JP Morgan Cazenove
• Greig Paterson - KBW
• Neil Welch - Macquarie
• Jon Hocking - Morgan Stanley
• Ben Bathurst - Nomura
• David McCann - Numis
• Marcus Barnard - Oriel Securities
• Barrie Cornes - Panmure Gordon
• Stuart Duncan - Peel Hunt
• Paul De’ath - RBC Capital Markets
• Eamon Flanagan - Shore Capital
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