1. PA RT N E R S I N M A N AG I N G YO U R W E A LT H
W H AT I T M E A N S TO B E A C L I E N T
2.
3. ABOUT US
THE STRENGTH OF THE PARTNERSHIP
OUR INVESTMENT MANAGEMENT APPROACH
BENEFITS OF OUR APPROACH
WHAT OUR CLIENTS THINK
HOW DO WE COMPARE?
APPENDICES
4
9
12
17
19
24
32
CONTENTS
3
4. ABOUT MY PRACTICE
• Part of the award-winning St. James’s PlaceWealth Management
• Face-to-face wealth management advice designed to suit your individual long-term
requirements
• Access to a wide range of products and services that can be tailored specifically to your
needs, making it easier and simpler for you to manage your wealth
• Everything from pension and InheritanceTax planning, through to investment
management that offers direct access to many of the top fund management teams across
the globe
4
5. • A leading UK wealth management organisation
• Founded in 1991
• A FTSE 100 company with a market capitalisation of c.£5 billion
• £65.6 billion client funds under management
• Over 2,320 Partner Practices within the St. James’s Place Partnership
• Supported by over 1,000 employees
All information as at 30 June 2016.
ABOUT ST. JAMES’S PLACE
5
6. • We are committed to helping clients manage their wealth in a way that reflects their
personal circumstances now and in the future
• We put our clients firmly at the centre of everything we do
• We provide face-to-face wealth management advice clients can trust
• We are a financially strong group; solvent, profitable and with the resources, capital,
people and expertise to support clients
• We underwrite our advice with a guarantee*
*
St.James’s Place guarantees the suitability of the advice given by members of the St.James’s Place Partnership when
recommending any of the wealth management products and services available from companies in the group.
OUR COVENANT
6
7. OUR ADVICE GUARANTEE
‘‘
’’
We guarantee the suitability of
the advice given by members of
the St.James’s Place Partnership
when recommending any of the
wealth management products
and services available from
companies in the Group,
more details of which are set
out on the Group’s website at
www.sjp.co.uk/products.
7
8. • Long-term face-to-face provision
of high quality advice from a highly
qualified financial adviser you can trust
• The security of knowing the advice is
backed by a guarantee*
provided by a
FTSE 100 company
• A business model that includes
succession planning, ensuring our
clients have support and service over
the years to come from their adviser
and from us
• Annual and onlineWealthAccount
• High quality specialist pensions, tax and
trust advice
• Ongoing management of investments by
leading global investment professionals
• Regular investment updates
• Monitoring by the St. James’s Place
Investment Committee
• Fund manager monitoring and
assessment by StamfordAssociates,
Redington and other respected
independent consultants
The value of an investment with St.James’s Place will be directly linked to the performance of
the funds selected and may fall as well as rise.You may get back less than the amount invested.
* St.James’s Place guarantees the suitability of the advice given by members of the St.James’s Place Partnership when
recommending any of the wealth management products and services available from companies in the group.
WHAT WE PROVIDE
8
9. T H E S T R E NGT H OF T H E PA RT N E R S H I P
10. Partners
4%
5%
2%
17%
23%
12%
4% 4%
21%
9%
• They are called Partners because of the way they
work in partnership with you
• Over 2,320 Partner Practices play the leading role
in delivering our wealth management service
• Some of the most experienced and able professionals
working in wealth management today – average
industry experience of c.18 years
• Proven track record
• Professionally qualified (Diploma and above)
• Exclusive access to St. James’s Place investment
approach and services
• Supported by specialist technical and compliance
professionals
• Focussed on maintaining long-term relationships
THE ST. JAMES’S PLACE PARTNERSHIP
10
Overseas
Partners: 3%
11. • How will you choose an investment
manager?
• How safe are your investments?
(And how will you know?)
• How will your investments be
monitored, and by whom?
• Which individual is managing your
money?
• Who is monitoring them?
• What would you do if they changed
jobs and how would you know?
• When is a good time to invest?
• When should you say‘no’?
• Governance – who is on your Investment
Committee?
There are some important questions we think all clients need to carefully consider when it
comes to investing:
The value of an investment with St. James’s Place will be directly linked to the
performance of the funds selected and may fall as well as rise.
You may get back less than the amount invested.
WHAT IS YOUR INVESTMENT
MANAGEMENT APPROACH?
11
12. OU R I N V E S T M E N T M A NAG E M E N T A PPROAC H
13. Appoints the
fund managers
Sets performance
objectives
Risk management
and strategy
Decisions:
Change firm?
Change manager?
No change?
‘MANAGES THE MANAGERS’
Peter
Dunscombe
Davina
Curling
Win
Robbins
Steven
Daniels
‘INDEPENDENT EXPERTISE’
THE
INVESTMENT
COMMITTEE
OUR APPROACH TO
INVESTMENT MANAGEMENT
13
14. Peter Dunscombe
Previously Chief Investment
Officer of the BBC Pension
Fund advising on investment
strategies and portfolio
development. Non-executive
member of the investment
committees of The Pensions
Trust and Reed Elsevier
Pension Fund.
Davina Curling
Non-executive director of
Invesco Income Growth
Trust and board member
of BlackRock Greater
EuropeanTrust. Former
Managing Director at
Russell Investments.
Win Robbins
Trustee Director of Now
PensionsTrust.Trustee
for Landesbanken Baden–
Wuerttenberg Pension
Fund. Director of City
Merchants HighYieldTrust.
Steven Daniels
Chief Investment Officer of
Tesco Staff Pension Scheme
and Investment Committee
member of theAlzheimer’s
Society. Former Group
Chief Investment Officer
at LiverpoolVictoria
Friendly Society.
INDEPENDENT GUIDANCE AND EXPERTISE
14
15. Research fund
manager market
Access to
whole market
Monitor managers
and Portfolios
Qualitative and
quantitative
Advise Investment
Committee
Focus on future
outperformance
• Analyse and identify
talented managers
• Gather intelligence
• Data analysis
• Monitor activity
• Workplace analysis
Recommend:
• Potential changes
• New managers
INDEPENDENT INVESTMENT CONSULTANCY
STAMFORD ASSOCIATES AND REDINGTON:
15
17. • No in-house managers, so no conflict of
interest
• Benefit from Investment Committee
experience expertise
• Global research capability
• Ability to appoint the best fund managers
with wholesale purchasing power
• Continuous monitoring, plus quarterly
reviews
• Any manager change is implemented
for all clients at the same time at no
additional cost and no tax implications
• No capital-intensive products,
performance guarantees, options or
overly complex, fashionable or high
risk funds
• A fair representation of the market
across a number of product areas
The value of an investment with St. James’s Place will be directly linked to the
performance of the funds selected and may fall as well as rise.
You may get back less than the amount invested.
BENEFITS OF OUR APPROACH
17
18. *
Although our advice is restricted to the products and services available through St. James’s Place,
we take responsibility for the due diligence on all the providers whose products and services we
make available to our clients, some of which are shown below.
WHOLE OF MARKET*
APPROACH
SIP SERVICES
18
19. • 83%1
are highly satisfied with their relationship with St. James’s Place – a third scoring us
10 out of 10
• 81%1
are highly satisfied with the relationship they have with their adviser
• 88%1
agreed that we provide excellent client service
• 82%1
are satisfied in the way in which we communicate with them
• 97%2
have recommended or would recommend St. James’s Place to others
• 84%1
would definitely invest with St. James’s Place again if making that decision today
1 Research carried out by Ledbury Research (600 surveyed) – November/December 2014.Scoring 8 or more out of 10.
2Wealth Account Survey (47,000 responses) – January 2015.
WHAT OUR CLIENTS THINK
19
20. ‘‘My Partner has done an excellent job, particularly when my husband passed away.
I didn’t know what I was doing so he was very good... he gave me advice and helped
me stay in the right direction.’’
‘‘I’m just totally happy. I wouldn’t recommend them to other people if I weren’t.
Recommendations can backfire, so you have to know it’s good.’’
‘‘What they’ve got right is their rapport with their clients – it’s on the right level.
I work with another financial company and they seem a bit condescending, whereas
St. James’s Place has the right balance.’’
‘‘I find it an excellent company and the Partner is first class. I’ve got no problems with
them. He’s got a very good attitude, he’s friendly, he comes round and visits when we
ask. I honestly couldn’t ask for anyone better.’’
*
Client survey carried out by Ledbury Research – December 2013.
WHAT OUR CLIENTS SAY ABOUT US*
20
21. ‘‘Our Partner has become a personal friend through the business.We couldn’t praise him
highly enough.
He has saved us a lot of money; he has done exactly what you would expect.We can discuss
any problems we have with him; he is always available to us. He has never steered us wrong.
This also goes for St. James’s Place – they go hand-in-hand.’’
*
Client survey carried out by Ledbury Research –November 2011.
WHAT OUR CLIENTS SAY ABOUT US*
21
22. 2016
• Pension Firm of the Year – Financial Directors’
ExcellenceAwards
• Best Private Client Investment Manager –
WealthAdviserAwards
• Wealth Management Company of the Year –
City of LondonWealth Management Awards
2015
• Pension Firm of the Year – Financial Directors’
ExcellenceAwards
• Top in Sector – Britain’s MostAdmired Companies
• BestWealth Manager for InheritanceTax and
Succession Planning – FT/Investors Chronicle
• BestWealth Manager for Trusts – FT/Investors
Chronicle
• Best FinancialAdviser – Personal FinanceAwards
• Best Private Client Investment Manager –
WealthAdviserAwards
• Wealth Management Company of the Year –
City of LondonWealth ManagementAwards
2014
• BestWealth Manager for Tax Efficiency and
Advice – FT/Investors Chronicle
• Best FinancialAdviser – Personal FinanceAwards
• Best Pension Providers’ Fund, UK Equities –
Money Observer Pension FundAwards
• FTSE 100 Business of the Year – National Business
Awards Finalist
• Best Performing Fund – City of LondonWealth
ManagementAwards
• Best Private Client Investment Manager –
WealthAdviserAwards
AWARD-WINNING WEALTH MANAGEMENT
22
25. • We aim to provide a quality service which exceeds our clients’ expectations;
a long-term relationship with a trusted financial adviser supported by a
financially-strong company.
• We have clear and transparent charges and make this information available
to clients before concluding business, so that they can judge how to value
our service.
HOW DO WE COMPARE?
25
26. Whilst often well-intentioned, the move to improve transparency and provide numerous
choices for clients makes comparison very difficult.
For example:
• energy tariffs – gas, electricity, dual fuel, peak, off-peak etc.
• mobile phone – phone, line rental, texts, data
• broadband – fixed cost, usage costs, data costs
• car finance – loan, hire purchase, personal contract hire, personal contract purchase
TRANSPARENT IS NOT COMPARABLE
26
27. The table illustrates 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.
TRANSPARENT... BUT NOT SIMPLE
Advice
Initial advice fee
% of initial investment
OR
Hourly rate (£) Rate may depend on seniority of adviser
Rate may depend on seniority of adviser
Amount may depend on activity
Tiered fee based on transaction size
Tiered fee based on amount invested +VAT
Tiered fee based on fund value
Amount based on fund value
Amount per transaction
Amount based on fund value
Amount will depend on insurance company
Amount based on value of funds under management
Amount based on value of funds under management
% of Funds Under Management
OR
Hourly rate (£)
% of Funds Under Management
OR
Prescribed fees (£)
% of Funds Under Management
OR
Prescribed fees (£)
Tiered fee based on fund value
Amount will depend on platform providerAccount fee (£)
Platform/Admin
Ongoing advice fee
Transaction charges
Insurance
Company
Administration fee
Wrapper charges
Administration fee
Fund
Management
Annual charge (%)
Annual management charges (£)
Additional miscellaneous costs
27
28. • Wealth Manager D
• AdviserA
• Adviser B
• Bank C
• Adviser D
• DFM B
• Adviser C
• Wealth ManagerA
• DFM C
• DFMA
3.1% p.a.
2.7% p.a.
2.7% p.a.
2.6% p.a.
2.6% p.a.
2.5% p.a.
2.5% p.a.
2.5% p.a.
2.5% p.a.
2.5% p.a.
• Adviser E*
• Adviser F
• Wealth Manager C
• BankA
• Adviser G
• St. James’s Place
• Bank B**
• Wealth Manager B
• Bank D***
2.5% p.a.
2.5% p.a.
2.3% p.a.
2.3% p.a.
2.3% p.a.
2.3% p.a.
2.2% p.a.
1.9% p.a.
1.2% p.a.
*
Adviser E does not accept portfolios of less than £200,000,so the level of charges shown is not available in practice.
**
Bank B charges calculated based on a portfolio size of £1,000,000,service no longer marketed to portfolios below £1m.
***
Bank D does not offer any ongoing advice service.
The figures shown have been produced by GrantThornton,an external consultancy.They show the Reduction inYield over 10 years for a
£100,000 investment into unwrapped mutual funds (UnitTrust,OEIC or equivalent),assuming 5% p.a.fund growth.GrantThornton has
collated and computed data in the attached table from publicly available information,and some mystery shopping face-to-face meetings,as at
June 2016 for use by St.James’s Place and its Partners.GrantThornton accepts no duty of care or liability of any kind whatsoever to any other
third parties,including without limitation clients or investors.Use of this report should not,and does not,absolve any third parties from using
due diligence in verifying the report’s contents.The information must not be relied upon by any party in making investment decisions.
TOTAL CHARGE COMPARISONS
28
29. • Fully integrated face-to-face advice and service
• Full disclosure of costs associated with advice, both initial and ongoing, and our service
before we do business
• Personalised illustration
• Our distinctive approach to investment management – select, monitor, change
• The suitability of advice guaranteed*
by St. James’s PlaceWealth Management
*
St.James’s Place guarantees the suitability of the advice given by members of the St.James’s Place Partnership
when recommending any of the wealth management products and services available from companies in the group.
THE ST. JAMES’S PLACE APPROACH
29
30. • How safe is your adviser’s firm? – Berkeley Berry Birch, Inter-Alliance, Money Portal,
BurnsAnderson, Clarkson Hill, Park Row, Honister are examples of advice firms that
have‘failed’ in recent years.
• What resources do they have to complete due diligence on investments and
products? – we often say‘no’ to products that we deem unsuitable for our clients
such as;Arch Cru, Key data, MF Global, Life Settlements, structured products.
• What succession plans are in place for your adviser?
• What technical and expert resources are available to support you?
• Is the advice you receive guaranteed?
WHO STANDS BEHIND THE ADVICE?
30
31. We will:
• Fully understand our clients’ financial circumstances
• Identify our clients’ goals and objectives
• Liaise with other professionals and experts as needed
• Formulate advice and make recommendations
• Provide a full explanation of all our costs, charges and advice fees
• Provide advice backed by the St. James’s PlaceAdvice Guarantee*
• Communicate with our clients and provide an ongoing service as agreed by them.
*
St.James’s Place guarantees the suitability of the advice given by members of the St.James’s Place Partnership when
recommending any of the wealth management products and services available from companies in the group.
SERVICE STANDARDS CHARTER
31
33. We are an independently quoted company with a Board of Directors which in turn has a
majority of Independent Non-Executive Directors
Executive Directors
David Bellamy
Chief Executive
Andrew Croft
Chief Financial
Officer
Ian Gascoigne
Managing Director,
Partnership
David Lamb
Managing Director,
Business Development
Chairman
Sarah Bates
Baroness
Wheatcroft
Simon Jeffreys Iain Cornish
RogerYates
Independent Non-Executives
OUR EXECUTIVE BOARD
33
34. The strength of our governance is fundamental to our high standards and the longevity of
our business:
• Compliance with regulatory and legal responsibilities
• Entrepreneurial leadership setting strategy, vision and values
• Ensuring strong management and succession plans
• Implementing controls to safeguard against risks
• Employing the necessary financial and human resources to deliver value to our clients
• Operating a financially strong business
• Avoiding capital intensive products, options, complex, fashionable or high risk structures
GOVERNANCE
34
35. 18% p.a. compound growth over the last 5 years and 17% p.a. over last 10 years (at June 2016)
FUNDS UNDER MANAGEMENT
£billion
10
20
30
40
50
60
70
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
June
+25%
+18% -10%
+31%
+26%
+6%
+22%
+27%
+17%
+13%
+12%
65.6
35
36.
37.
38. The‘St. James’s Place Partnership’ and the titles‘Partner’ and‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.
Members of the St. James’s Place Partnership in the UK represent St. James’s PlaceWealth Management plc, which is authorised and regulated by the Financial ConductAuthority.
St. James’s PlaceWealth Management plc Registered Office: St. James’s Place House, 1Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom.
Registered in England Number 4113955.
SJP4150-VR16(10/16)
