ST. JAMES’S PLACE WEALTH MANAGEMENT DECEMBER 2008
Contents <ul><li>Current trading update </li></ul><ul><li>Strategy </li></ul><ul><li>The Partnership </li></ul><ul><li>Inv...
Current trading update 31 December 2008
Full Year Results 2008 <ul><li>Highlights: </li></ul><ul><li>New Business (APE) of £419.0 million </li></ul><ul><li>Total ...
New business by quarter £’m APE (Annual premiums plus 10% of single premiums) 2007 2006 2006 over 2005 +57%   +54%  +63%  ...
Investment new business by quarter Single premiums 2007 2006 2006 over 2005   +71% +47%   +49%  +36% 2007 over 2006   +22%...
Pensions new business by quarter £’m Single premiums 2007 2006 2006 over 2005   +83% +78%   +106%  +147% 2007 over 2006   ...
Pensions new business by quarter £’m Regular premiums 2007 2006 2006 over 2005   +31% +80%   +132%   +93% 2007 over 2006  ...
Funds under management +31 % -6 % +10 % +47 % Funds £’bn +34 % +20 % +25 % +29 % +18 % +24 % 16%p.a. compound growth over ...
Fund flow information <ul><li>  </li></ul><ul><li>FUM at start   18.2   15.4   </li></ul><ul><li>New money invested   3.0 ...
Analysis of life, pension & unit trust pre-tax operating profit 2008 £’m 2007   248.9 224.9 Operating profit 6.9 4.9 Inves...
Pre-tax EEV profit <ul><li>  </li></ul><ul><li>Life & pension   174.1    189.9 </li></ul><ul><li>Unit trust   50.8    59.0...
<ul><li>Final dividend of 2.55 pence maintained </li></ul>Dividend
Analysis of adjusted post tax profit <ul><li>Net annual management fee     122.2   123.2 </li></ul><ul><li>Unwind of surre...
Analysis of underlying post tax cashflow <ul><li>£’ m 2008  2007  </li></ul><ul><li>Arising on in force business  91.4    ...
Year end capital position £’m Life Other Regulated Other Total Solvency position Solvency net assets   151.9   19.3   88.8...
Year end capital position £’m Life Other Regulated Other Total Analysis of solvency net assets   UK Govt. gilts  23.0   - ...
Group expenses 2008 £’m 2007 121.9 126.7  406.8 391.0 (14.4) (13.1)  Contribution from 3 rd  party product sales 91.9  97....
Uniquely placed in growing market <ul><li>Proven growth record over longer term </li></ul><ul><li>Organic growth, not acqu...
Outlook <ul><ul><li>Respected and well positioned brand / business </li></ul></ul><ul><ul><li>Loyal client base (Partners ...
Strategy
St. James’s Place: overview <ul><li>UK wealth management company </li></ul><ul><li>FTSE 250 market cap c £1bn </li></ul><u...
Structure of St. James’s Place 60 % LLOYDS 100 % Manufacturing Distribution St. James’s Place SJP GROUP Wealth Management ...
The growth model Target 15 – 20% pa New Business CAPACITY No of Partners PRODUCTIVITY New Business Per Partner
Our wealth management services <ul><li>Pensions </li></ul><ul><li>Investment </li></ul><ul><li>Estate protection </li></ul...
What we don’t have <ul><li>No with profits </li></ul><ul><li>No guaranteed annuity options </li></ul><ul><li>No solvency a...
The Partnership
The Partnership <ul><ul><li>High quality self-employed team of 1,340 advisers </li></ul></ul><ul><ul><li>Only experienced ...
Number of Partners Number of Partners +10% +9% +8% +7% -2% +2% +1% +2% +5% +8% +7%
Partners Clients 7% 23% 13% 3% 22% 15% 9% 3% 2% 6% 24% 14% 4% 25% 11% 11% 3% 2% Overseas Clients: 3% Geographic Distribution
Changing face of the Partnership 2004 2008 (APE)
Partners by Age Band
The Academy <ul><li>First 8 academy members join the Partnership </li></ul><ul><li>45 people currently training in the aca...
Benefits of our own distribution <ul><li>New business more predictable </li></ul><ul><li>Spread of production </li></ul><u...
Why join SJP? <ul><li>Brand recognition for preferential, trusted advice </li></ul><ul><li>Guarantee </li></ul><ul><li>Uni...
Investment Management
Investment management approach Investment Committee Select, monitor and change investment houses 19 investment management ...
External investment managers <ul><li>Core managers – managed funds </li></ul><ul><ul><li>AXA Framlington  </li></ul></ul><...
Advantages of investment approach <ul><li>No in-house investment managers – no conflict of interest </li></ul><ul><li>Sele...
The role of Stamfords <ul><li>Stamfords work with the Investment Committee to help achieve superior investment results ove...
Funds under management +31 % -6 % +10 % +47 % Funds £’bn +34 % +20 % +25 % +29 % +18 % +24 % 16%p.a. compound growth over ...
Funds Under Management: Shown by Asset Class and Region
Relative investment performance of funds under management – 1 year 16% 14% 4% 20% 12% 8% 3% 15% 6% 8% 12% 15% 15% 7% 5% 23...
Relative investment performance of funds under management – rolling 5 year 2008 2007 2006 2005 2004 2003 2002 2001 2000 1 ...
Our clients
Our clients <ul><li>82,000 wealth management clients </li></ul><ul><li>Average age: 60 </li></ul><ul><li>Average funds und...
Geographic Distribution of Client FUM 5% 19% 12% 4% 24% 18% 10% 3% 1% Overseas Clients 4%
FUM by Value of Clients
New and Retained Clients by Age Band
Clients vote us Wealth Manager of Year
Our market
Our market <ul><li>The market is big </li></ul><ul><li>Favourable demographics </li></ul><ul><li>The tax burden is increas...
The SJP Market Place
The SJP Marketplace
The SJP Opportunity <ul><li>£78bn held in Stocks & Shares ISAs  </li></ul><ul><li>(HMRC as at 5/4/2008) </li></ul><ul><li>...
The SJP Opportunity <ul><li>£163bn in cash ISAs  (Building Society Association December 2008) </li></ul><ul><ul><li>Low in...
The SJP Opportunity <ul><li>Pensions </li></ul><ul><ul><li>52% of open defined benefit schemes expect to close to new memb...
The SJP opportunity <ul><li>The average UK high net worth … is particularly focused on  tax optimisation  and his financin...
Analyst following
<ul><li>Craig Bourke </li></ul><ul><li>Roman Cizdyn </li></ul><ul><li>Rakshit Ranjan </li></ul><ul><li>Raghu Hariharan </l...
History & Board
History <ul><li>1992 Management team left Allied Dunbar Assurance,  UK’s largest  unit-linked assurer (now part of Zurich ...
Board of directors <ul><li>Chairman </li></ul><ul><li>Mike Wilson </li></ul><ul><li>Executive directors </li></ul><ul><li>...
Foundation
St. James’s Place Foundation <ul><li>Foundation established in 1992 based on simple belief that those of us who have shoul...
24 February 2009
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  1. 1. ST. JAMES’S PLACE WEALTH MANAGEMENT DECEMBER 2008
  2. 2. Contents <ul><li>Current trading update </li></ul><ul><li>Strategy </li></ul><ul><li>The Partnership </li></ul><ul><li>Investment Management </li></ul><ul><li>Our clients </li></ul><ul><li>Our market </li></ul><ul><li>Analyst following </li></ul><ul><li>History & Board </li></ul><ul><li>Foundation </li></ul><ul><li>Page No: </li></ul><ul><li>2 </li></ul><ul><li>20 </li></ul><ul><li>26 </li></ul><ul><li>35 </li></ul><ul><li>44 </li></ul><ul><li>50 </li></ul><ul><li>58 </li></ul><ul><li>60 </li></ul><ul><li>63 </li></ul>
  3. 3. Current trading update 31 December 2008
  4. 4. Full Year Results 2008 <ul><li>Highlights: </li></ul><ul><li>New Business (APE) of £419.0 million </li></ul><ul><li>Total single investments of £3.1 billion </li></ul><ul><li>Continued 95% retention of FUM </li></ul><ul><li>FUM at £16.3 billion with net inflows </li></ul><ul><li>Partnership numbers 1,340 up 7% </li></ul><ul><li>EEV new business profit £123.5 million </li></ul><ul><li>EEV operating profit at £204.3 million </li></ul><ul><li>EEV net asset value of 232.4 pence </li></ul>
  5. 5. New business by quarter £’m APE (Annual premiums plus 10% of single premiums) 2007 2006 2006 over 2005 +57% +54% +63% +59% 2007 over 2006 +41% +26% +20% +10% 2008 over 2007 +1% +5% +0% -15% 2008
  6. 6. Investment new business by quarter Single premiums 2007 2006 2006 over 2005 +71% +47% +49% +36% 2007 over 2006 +22% +39% +30% +16% 2008 over 2007 -4% -4% -20% -24% 2008 £’m
  7. 7. Pensions new business by quarter £’m Single premiums 2007 2006 2006 over 2005 +83% +78% +106% +147% 2007 over 2006 +105% +52% +27% -4% 2008 over 2007 +9% +10% +19% -3% 2008
  8. 8. Pensions new business by quarter £’m Regular premiums 2007 2006 2006 over 2005 +31% +80% +132% +93% 2007 over 2006 +83% -10% -7% +18% 2008 over 2007 +7% +37% +48% -4% 2008
  9. 9. Funds under management +31 % -6 % +10 % +47 % Funds £’bn +34 % +20 % +25 % +29 % +18 % +24 % 16%p.a. compound growth over the last 5 years and 18%p.a. over 10 years -10 %
  10. 10. Fund flow information <ul><li> </li></ul><ul><li>FUM at start 18.2 15.4 </li></ul><ul><li>New money invested 3.0 3.1 </li></ul><ul><li>Investment return (3.6) 0.9 </li></ul><ul><li> 17.6 19.4 </li></ul><ul><li>Regular income withdrawals/ </li></ul><ul><li>maturities (0.4) (0.3) </li></ul><ul><li>Surrenders / part surrenders (0.9) (0.9) </li></ul><ul><li>FUM at close 16.3 18.2 </li></ul><ul><li>Implied surrender rate as % </li></ul><ul><li>of average FUM 5.2% 5.1% </li></ul>£’bn 2008 2007
  11. 11. Analysis of life, pension & unit trust pre-tax operating profit 2008 £’m 2007 248.9 224.9 Operating profit 6.9 4.9 Investment income 77.7 80.5 - expected (2.8) (0.9) - operating assumption changes 16.2 16.9 - experience variance Profits from existing business 150.9 123.5 New business contribution
  12. 12. Pre-tax EEV profit <ul><li> </li></ul><ul><li>Life & pension 174.1 189.9 </li></ul><ul><li>Unit trust 50.8 59.0 </li></ul><ul><li>Other operations (20.6) (4.2) </li></ul><ul><li>Total Operating profit 204.3 244.7 </li></ul><ul><li>Investment variance (320.6) (14.5) </li></ul><ul><li>Economic changes 0.4 0.2 </li></ul><ul><li>Pre-tax result (115.9) 230.4 </li></ul>£’m 2008 2007
  13. 13. <ul><li>Final dividend of 2.55 pence maintained </li></ul>Dividend
  14. 14. Analysis of adjusted post tax profit <ul><li>Net annual management fee 122.2 123.2 </li></ul><ul><li>Unwind of surrender penalties (44.4) (44.6) </li></ul><ul><li>New business strain (10.0) (7.7) </li></ul><ul><li>Establishment expenses (72.2) (67.3) </li></ul><ul><li>Investment income 10.1 10.5 </li></ul><ul><li>Other 18.4 11.8 </li></ul><ul><li>Underlying cash flow 24.1 25.9 </li></ul><ul><li>One off - 7.2 </li></ul><ul><li> 24.1 33.1 </li></ul><ul><li> </li></ul>£’m 2008 2007
  15. 15. Analysis of underlying post tax cashflow <ul><li>£’ m 2008 2007 </li></ul><ul><li>Arising on in force business 91.4 84.7 </li></ul><ul><li>Arising from new business (67.3) (58.8) </li></ul><ul><li> 24.1 25.9 </li></ul>
  16. 16. Year end capital position £’m Life Other Regulated Other Total Solvency position Solvency net assets 151.9 19.3 88.8 260.0 Solvency requirement 41.1 14.6 Solvency ratio 370% 132%
  17. 17. Year end capital position £’m Life Other Regulated Other Total Analysis of solvency net assets UK Govt. gilts 23.0 - - 23.0 Other Govt. backed debt 26.3 - - 26.3 AAA rated money market funds 137.0 15.6 20.5 173.1 Bank balances 26.3 20.1 15.3 61.7 Fixed assets - - 12.2 12.2 Actuarial reserves (32.2) - - (32.2) Other assets / liabilities (28.5) (16.4) 40.8 (4.1) Solvency net assets 151.9 19.3 88.8 260.0 Adjustments to IFRS basis 256.3 (8.3) - 248.0 IFRS net assets 408.2 11.0 88.8 508.0
  18. 18. Group expenses 2008 £’m 2007 121.9 126.7 406.8 391.0 (14.4) (13.1) Contribution from 3 rd party product sales 91.9 97.6 Establishment expenses 44.4 42.2 Other production related costs 284.9 264.3 Direct expenses 24.7 27.8 3 rd party administration 68.4 59.6 Investment expenses 191.8 176.9 Partner remuneration Paid from policy margins
  19. 19. Uniquely placed in growing market <ul><li>Proven growth record over longer term </li></ul><ul><li>Organic growth, not acquisitive </li></ul><ul><li>Niche market </li></ul><ul><li>Dedicated distributor with manufacturer margins </li></ul><ul><li>Positive reputation (wealth manager awards) </li></ul><ul><li>Successful investment approach </li></ul><ul><li>Not exposed to industry issues </li></ul><ul><li>Clear focus on business model </li></ul><ul><li>Longer term demographics are positive (with fewer advisers) </li></ul>
  20. 20. Outlook <ul><ul><li>Respected and well positioned brand / business </li></ul></ul><ul><ul><li>Loyal client base (Partners and investors) </li></ul></ul><ul><ul><li>3 rd consecutive year of strong recruitment </li></ul></ul><ul><ul><li>Opportunities for further growth in Partnership (RDR, reputation, city redundancies) </li></ul></ul><ul><ul><li>Investment Management Approach more resilient </li></ul></ul><ul><ul><li>Strong solvency position </li></ul></ul><ul><ul><li>Strong market for advice </li></ul></ul><ul><ul><li>Economic uncertainty / stock market weakness </li></ul></ul><ul><ul><li>But strong / early growth on market recovery </li></ul></ul><ul><ul><li>Uniquely placed business </li></ul></ul>
  21. 21. Strategy
  22. 22. St. James’s Place: overview <ul><li>UK wealth management company </li></ul><ul><li>FTSE 250 market cap c £1bn </li></ul><ul><li>Target mass affluent / high net worth market </li></ul><ul><li>UK centric </li></ul><ul><li>Dedicated distribution through our own wealth managers </li></ul><ul><li>Strong retention of clients and Partners </li></ul><ul><li>Focus on areas where management adds value </li></ul><ul><ul><li>Outsource administration </li></ul></ul><ul><ul><li>Outsource investment management </li></ul></ul><ul><ul><li>Joint ventures for non-core activities </li></ul></ul><ul><li>Minimise shareholder financed overheads </li></ul><ul><li>£16.3bn funds under management and a further £1.5bn under advice </li></ul><ul><li>Charitable Foundation </li></ul><ul><li>Simple Group structure </li></ul>
  23. 23. Structure of St. James’s Place 60 % LLOYDS 100 % Manufacturing Distribution St. James’s Place SJP GROUP Wealth Management SJP Life and Unit Trust Companies SJP Partnership
  24. 24. The growth model Target 15 – 20% pa New Business CAPACITY No of Partners PRODUCTIVITY New Business Per Partner
  25. 25. Our wealth management services <ul><li>Pensions </li></ul><ul><li>Investment </li></ul><ul><li>Estate protection </li></ul><ul><li>Estate creation </li></ul><ul><li>Inheritance tax solutions </li></ul><ul><li>ISAs </li></ul><ul><li>Offshore bonds </li></ul><ul><li>Mortgages </li></ul><ul><li>Employee benefits </li></ul><ul><li>Trust & Estate planning </li></ul><ul><li>Protection </li></ul><ul><li>General insurance </li></ul><ul><li>Annuities </li></ul><ul><li>Portfolio management </li></ul><ul><li>Banking </li></ul><ul><li>Stakeholder </li></ul><ul><li>Private medical insurance </li></ul>
  26. 26. What we don’t have <ul><li>No with profits </li></ul><ul><li>No guaranteed annuity options </li></ul><ul><li>No solvency assets invested in equities </li></ul><ul><li>No final salary pension scheme </li></ul><ul><li>No longevity risk </li></ul><ul><li>No split level trusts </li></ul><ul><li>No derivative-based “precipice” funds </li></ul><ul><li>No mortgages / sub prime </li></ul><ul><li>No monoline reassurance </li></ul><ul><li>No hybrid debt </li></ul>
  27. 27. The Partnership
  28. 28. The Partnership <ul><ul><li>High quality self-employed team of 1,340 advisers </li></ul></ul><ul><ul><li>Only experienced advisers: average 17 years </li></ul></ul><ul><ul><li>Bring existing client bases </li></ul></ul><ul><ul><li>High productivity – 2.5 x industry average </li></ul></ul><ul><ul><li>Average age of Partner – 48 years old </li></ul></ul><ul><ul><li>Male : Female – 90 : 10 </li></ul></ul><ul><ul><li>Focus on higher value clients </li></ul></ul><ul><ul><li>Growth in specialisms </li></ul></ul><ul><ul><li>Stability (including retirees) </li></ul></ul><ul><ul><li>- 97% p.a. retention by value (APE) </li></ul></ul><ul><ul><li>- no single Partner represents over 1% of APE </li></ul></ul><ul><ul><li>Academy starting to bear fruit </li></ul></ul>(Own dedicated distribution)
  29. 29. Number of Partners Number of Partners +10% +9% +8% +7% -2% +2% +1% +2% +5% +8% +7%
  30. 30. Partners Clients 7% 23% 13% 3% 22% 15% 9% 3% 2% 6% 24% 14% 4% 25% 11% 11% 3% 2% Overseas Clients: 3% Geographic Distribution
  31. 31. Changing face of the Partnership 2004 2008 (APE)
  32. 32. Partners by Age Band
  33. 33. The Academy <ul><li>First 8 academy members join the Partnership </li></ul><ul><li>45 people currently training in the academy </li></ul><ul><li>Average age 39 </li></ul><ul><li>Two additional intakes of 15 to 20 planned for 2009 </li></ul><ul><li>Refining process as we progress </li></ul><ul><li>Successful event targeting city fall out/ other events planned </li></ul>
  34. 34. Benefits of our own distribution <ul><li>New business more predictable </li></ul><ul><li>Spread of production </li></ul><ul><li>Less exposed to market pressures </li></ul><ul><li>Greater control over quality of new business </li></ul><ul><li>Better retention of business </li></ul><ul><li>Our clients – cross selling opportunities </li></ul><ul><li>Control over brand </li></ul><ul><li>Can incentivise distribution </li></ul><ul><li>Strong client advocacy </li></ul>
  35. 35. Why join SJP? <ul><li>Brand recognition for preferential, trusted advice </li></ul><ul><li>Guarantee </li></ul><ul><li>Unique exit /retirement options </li></ul><ul><li>Meritocracy </li></ul><ul><li>Client service focus (SJP culture) </li></ul><ul><li>Financial and regulatory stability of principle </li></ul><ul><li>Investment management approach </li></ul>
  36. 36. Investment Management
  37. 37. Investment management approach Investment Committee Select, monitor and change investment houses 19 investment management houses (select individual managers) Stamford Associates (Consultants)
  38. 38. External investment managers <ul><li>Core managers – managed funds </li></ul><ul><ul><li>AXA Framlington </li></ul></ul><ul><ul><li>GAM </li></ul></ul><ul><ul><li>Invesco Perpetual </li></ul></ul><ul><ul><li>Jupiter </li></ul></ul><ul><ul><li>Newton </li></ul></ul><ul><ul><li>Polaris </li></ul></ul><ul><ul><li>Schroder Investment Management </li></ul></ul><ul><ul><li>Taube Hodson Stonex Partners </li></ul></ul><ul><li>Specialist managers </li></ul><ul><ul><li>Aberdeen (Far East, Ethical) </li></ul></ul><ul><ul><li>BGI (Alternative Assets) </li></ul></ul><ul><ul><li>Insight (Tracker) </li></ul></ul><ul><ul><li>Invesco Perpetual (Corporate Bond) </li></ul></ul><ul><ul><li>Invista (Commercial Property) </li></ul></ul><ul><ul><li>Oldfield / Thornburg (High Octane) </li></ul></ul><ul><ul><li>Reed Connor Birdwell (North American) </li></ul></ul><ul><ul><li>RWC Partners (UK Growth) </li></ul></ul><ul><ul><li>State Street (Cash) </li></ul></ul><ul><ul><li>S W Mitchell (Continental European) </li></ul></ul><ul><ul><li>Wellington (Gilts & International Bond) </li></ul></ul>
  39. 39. Advantages of investment approach <ul><li>No in-house investment managers – no conflict of interest </li></ul><ul><li>Selection of managers (“best of breed”) – wholesale purchasing power </li></ul><ul><li>Spread - 8 core balanced funds with different styles </li></ul><ul><li>Use only genuinely “active” managers </li></ul><ul><li>Monitoring - continuous analysis plus quarterly presentations </li></ul><ul><li>Changing managers </li></ul><ul><ul><li>ease of change </li></ul></ul><ul><ul><li>improved persistency </li></ul></ul>
  40. 40. The role of Stamfords <ul><li>Stamfords work with the Investment Committee to help achieve superior investment results over time. </li></ul><ul><li>They provide: </li></ul><ul><ul><li>Dedicated research and advice </li></ul></ul><ul><ul><li>Manager research & assessment </li></ul></ul><ul><ul><li>Regular monitoring of managers </li></ul></ul><ul><ul><li>Regular portfolio analysis </li></ul></ul><ul><ul><li>Advice on changing managers </li></ul></ul>
  41. 41. Funds under management +31 % -6 % +10 % +47 % Funds £’bn +34 % +20 % +25 % +29 % +18 % +24 % 16%p.a. compound growth over the last 5 years and 18%p.a. over 10 years -10 %
  42. 42. Funds Under Management: Shown by Asset Class and Region
  43. 43. Relative investment performance of funds under management – 1 year 16% 14% 4% 20% 12% 8% 3% 15% 6% 8% 12% 15% 15% 7% 5% 23% 9% 1% 10% 24% 22% 34% 28% 10% 11% 39% 23% 38% 13% 49% 47% 45% 73% 57% 49% 61% 46% 55% 2008 2008 2006 2005 2004 2003 2002 2001 2000 1999 14% 58% 2007 2006 2005 2004 2003 2002 2001 2000 1999 1 st 2 nd 3 rd 4 th
  44. 44. Relative investment performance of funds under management – rolling 5 year 2008 2007 2006 2005 2004 2003 2002 2001 2000 1 st 2 nd 3 rd 4 th
  45. 45. Our clients
  46. 46. Our clients <ul><li>82,000 wealth management clients </li></ul><ul><li>Average age: 60 </li></ul><ul><li>Average funds under management: £180k </li></ul><ul><li>Average duration as SJP client: 7.4 years </li></ul><ul><li>Strong clients advocacy </li></ul><ul><li>Clients vote us Wealth Manager of the Year </li></ul>
  47. 47. Geographic Distribution of Client FUM 5% 19% 12% 4% 24% 18% 10% 3% 1% Overseas Clients 4%
  48. 48. FUM by Value of Clients
  49. 49. New and Retained Clients by Age Band
  50. 50. Clients vote us Wealth Manager of Year
  51. 51. Our market
  52. 52. Our market <ul><li>The market is big </li></ul><ul><li>Favourable demographics </li></ul><ul><li>The tax burden is increasing </li></ul><ul><li>UK high net worth individuals want face to face advice </li></ul>
  53. 53. The SJP Market Place
  54. 54. The SJP Marketplace
  55. 55. The SJP Opportunity <ul><li>£78bn held in Stocks & Shares ISAs </li></ul><ul><li>(HMRC as at 5/4/2008) </li></ul><ul><li>Around £10bn new money into Stocks & Shares ISAs in 2008 </li></ul><ul><li>(IMA Dec 2008 Data and ABI End Q3 data extrapolated) </li></ul><ul><li>SJP £0.5bn – around 5% share </li></ul>
  56. 56. The SJP Opportunity <ul><li>£163bn in cash ISAs (Building Society Association December 2008) </li></ul><ul><ul><li>Low interest rates </li></ul></ul><ul><ul><li>Can be transferred </li></ul></ul><ul><li>Average interest rate on instant access accounts 0.81% (Bank of England, 4 Feb 2009) </li></ul><ul><li>“ savers have lost an estimated £27 billion in income since December 2007, when Bank rate stood at 5.5%” </li></ul><ul><li>(The Times, 3 Feb 2009) </li></ul>
  57. 57. The SJP Opportunity <ul><li>Pensions </li></ul><ul><ul><li>52% of open defined benefit schemes expect to close to new members within 5 years National Association of Pension Funds, 23 January 2009 </li></ul></ul><ul><ul><li>More than 59% of UK workers are not confident that they will have enough money during retirement Club VITA survey </li></ul></ul><ul><ul><li>Almost 1.7m are relying on property to fund their retirement USwitch </li></ul></ul>
  58. 58. The SJP opportunity <ul><li>The average UK high net worth … is particularly focused on tax optimisation and his financing needs, and has a markedly lower knowledge of financial products than his European counterparts. Face to face relationship management is very important to him , and he is reliant on recommendations from someone he knows in choosing his wealth manager . </li></ul><ul><li>Datamonitor – Wealth Management in the UK, 2008 </li></ul>
  59. 59. Analyst following
  60. 60. <ul><li>Craig Bourke </li></ul><ul><li>Roman Cizdyn </li></ul><ul><li>Rakshit Ranjan </li></ul><ul><li>Raghu Hariharan </li></ul><ul><li>Colin Simpson </li></ul><ul><li>James Pearce </li></ul><ul><li>Blair Stewart </li></ul><ul><li>Barrie Cornes </li></ul><ul><li>Eamonn Flanagan </li></ul><ul><li>Blue Oak Capital Ltd </li></ul><ul><li>Blue Oar Securities </li></ul><ul><li>Clear Capital </li></ul><ul><li>Fox-Pitt Kelton </li></ul><ul><li>Goldman Sachs </li></ul><ul><li>JPMorgan Cazenove </li></ul><ul><li>Merrill Lynch </li></ul><ul><li>Panmure Gordon </li></ul><ul><li>Shore Capital </li></ul>Analyst following
  61. 61. History & Board
  62. 62. History <ul><li>1992 Management team left Allied Dunbar Assurance, UK’s largest unit-linked assurer (now part of Zurich Financial Services) </li></ul><ul><li>J. Rothschild Assurance Group launched (backed by Scottish Amicable and Lord Rothschild) </li></ul><ul><li>1997 J. Rothschild Assurance Group reversed into St. James’s Place Capital plc (listed on London Stock Exchange) </li></ul><ul><li>2000 HBOS acquired 60% interest in St. James’s Place </li></ul><ul><li>J. Rothschild Assurance Group rebranded St. James’s Place </li></ul><ul><li>2009 Lloyds Banking Group assume holding as part of HBOS transaction </li></ul>
  63. 63. Board of directors <ul><li>Chairman </li></ul><ul><li>Mike Wilson </li></ul><ul><li>Executive directors </li></ul><ul><li>David Bellamy (CEO) </li></ul><ul><li>Andrew Croft </li></ul><ul><li>Ian Gascoigne </li></ul><ul><li>David Lamb </li></ul><ul><li>Non executive </li></ul><ul><li>directors </li></ul><ul><li>Sarah Bates </li></ul><ul><li>Steve Colsell (Lloyds) </li></ul><ul><li>Jo Dawson (Lloyds) </li></ul><ul><li>Derek Netherton </li></ul><ul><li>Mike Power </li></ul><ul><li>Michael Sorkin </li></ul><ul><li>Roger Walsom </li></ul>
  64. 64. Foundation
  65. 65. St. James’s Place Foundation <ul><li>Foundation established in 1992 based on simple belief that those of us who have should give to those who have less or who suffer in some way </li></ul><ul><li>Supporting the Foundation is a key cornerstone for the SJP culture </li></ul><ul><li>Every employee and Partner is encouraged to take part in, and contribute towards fund raising events </li></ul><ul><li>Over 80% of the community make monthly payments by deed of covenant </li></ul><ul><li>Company matches funds raised </li></ul><ul><li>In 2008 raised £2.5 million in a record year </li></ul><ul><li>Major grants made to Children’s Trust, Help the Hospice, Teenager Cancer Trust and Hope & Homes </li></ul><ul><li>Hundreds of small grants are made each year </li></ul>
  66. 66. 24 February 2009

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