2. St. James’s Place Bank
(A division of Bank of Scotland plc)
St. James’s Place UK
Medical Insurance
General Insurance
Offshore and Trust AdvicePortfolio Management
Clients
St. James’s Place
International
St. James’s Place
Unit Trusts
Annuity Bureau Mortgage Service
Pension Drawdown
Estate Planning
3. Some Managers Are Better Than Others
• £10,000 Invested over 10 years
• Average UK Deposit Account £12,707
• Average UK Equity Unit Trust £14,824
• Average of top 25% of all UK Equity Unit Trusts £19,187
• Average of bottom 25% of all UK Equity Unit Trusts £11,794
Source: Lipper Hindsight 10 years to 30/05/08, Offer to bid, net income reinvested.
Please be aware that past performance is not indicative of future performance . The value of your
investment and the income from it, can fall as well as rise. Returns on equities cannot be
guaranteed. Equities do not provide the security of capital characteristic of a deposit with a
bank or building society.
4. Some Managers Are Better Than Others
Discrete Annual Returns
May 07 to
May 08
May 06 to
May 07
May 05 to
May 06
May 04 to
May 05
May 03 to
May 04
Average UK
Deposit
4.11% 3.52% 3.22% 3.25% 0.89%
Average UK
Equity UT
-9.83% 22.19% 20.94% 14.64% 16.16%
Average Top 25%
UK Equity UT
-2.60% 31.20% 29.01% 19.71% 28.04%
Average Bottom
25% UK Equity
UT
-18.10% 17.37% 15.73% 11.24% 11.00%
Source: Lipper Hindsight. Please be aware that past performance is not indicative of future
performance.
5. ‘Identification of likely future out-performance requires highly
sophisticated and time-intensive analysis of performance data and
fund manager styles. Only a tiny minority of consumers have access
to this sort of analysis. Yet without doing so, simply looking at past
performance is of minimal value.’
The Sandler Report 2002
6. Our Investment Philosophy
• Contract-out Investment Management
• ‘Manage’ the Fund Managers
• Select
• Monitor
• Change
• Offer spread and choice of Fund Managers
• Different Investment Styles
7. Our Approach to Investment
Stamford Associates Limited
Investment Consultancy
St. James's Place Investment Committee
Chaired by
Sir Mark Weinberg
8. Stamford Associates
Analyse & Identify
Talented Managers
Gather Intelligence
Research Fund
Manager Market
Use Behavioural
Psychology
Look for 'Torpedoes'
Monitor Managers
and Portfolios
Recommend:
Potential changes
New Managers
Advise Investment
Committee
Stamford
Associates
Note – Commercial Property fund not monitored by Stamfords Associates
9. The St. James’s Place Approach
Fund Manager
Presentations:
Questions
Performance
Analysis Aim for
Top 25%
Risk & Strategy
Analysis
Decision:
Change Firm
Change Manager
No Change
Quarterly Meeting
Stamford
In Attendance
'Manages the Managers'
Investment Committee
Chairman – Sir Mark Weinberg
Sarah Bates
10. Investment Committee Record
April 2004 Property Fund launched, mandate given to Insight
Investment.
INAM replaced and mandate given to Reed, Conner &
Birdwell to run North American funds
February 2004
April 2005 Liontrust removed. Schroder appointed to run Select
UK growth funds
July 2006 Select Funds closed. AXA/Framlington and Newton
appointed to run new Managed funds
January 2007 New Fund Launches – Global Fund run by Newton,
Worldwide Opportunities and Worldwide Managed
Funds run by Polaris, UK Growth Funds run buy
MPC Investors, and Cautious Funds run by Jupiter.
11. Investment Committee Record
April 2007 New Fund Links – Equity Income Distribution available
through the IDB, Equity Income available through a
Pension Plans and the a Unit Trust version of the
Cautious Fund has been made available.
October 2007 New Fund Links – Diversified Income fund managed by
AXA Framlington, Distribution fund available through
IDB.
BIAM replaced by S W Mitchell to manage the
Continental European fund.
UK Growth fund now available as a life and pension
fund.
12. Investment Committee Record
April 2008 New Fund Links – Jupiter Cautious Distribution
available through IDB.
Wellington replaced by Invesco Perpetual to
manage the Corporate Bond fund.
New Fund Launches – High Octane fund run by
Oldfield and Thornburg, Cash Unit Trust run by
State Street.
14. The Fund Managers
The Funds They Manage
THS Partners THSP Managed, European Progressive, International, UK & General
Invesco Perpetual Invesco Perpetual Managed, Income, International Bond, Corporate Bond
Reed, Conner & Birdwell North American
Schroder Schroder Managed, Equity Income, Equity Income Distribution
Polaris Worldwide Managed, Worldwide Opportunities
AXA Framlington AXA Framlington Managed, Diversified Income
Newton Newton Global Managed, Global
Aberdeen Far East, Ethical
Wellington UK Gilts
S W Mitchell Continental European
Invista Real Estate Property
RWC Partners UK Growth
Jupiter Cautious, Cautious Distribution
Insight UK Tracker
State Street Cash Unit Turst
Oldfield and Thornburg High Octane
15. How Good Is St. James’s Place Investment Performance?
16. Lipper Fund Awards
• St. James's Place Unit Trust Group 1st
Three years 2005
(Mixed Asset UT Group)
• St. James's Place International 1st
Ten years 2005
(Global Mixed Asset Sector)
• St. James’s Place UK & General 1st
Ten years 2005
(UK Mixed Asset Sector)
• St. James's Place Recovery 1st
Five years 2006
(Global Mixed Asset Sector)
• St. James’s Place GAM Managed 1st
Ten years 2006
(Stock Market Pensions Fund Sector)
17. The St. James’s Place Income Portfolio
Source Lipper Hindsight. All data correct as at 30/05/08. Please be aware that past performance is
not indicative of future performance. Minimum investment £3,000.
Unit Trust % Holding
UK High Income
(Invesco Perpetual)
40%
Corporate Bond
(Invesco Perpetual)
30%
Equity Income
(Schroder)
15%
Property
(Invista)
15%
UK Equities 54%
Cash & Fixed-Interest
33%
Property
13%
18. The St. James’s Place
Growth & Income Portfolio
UK Equities 32%
Cash & Fixed-Interest
22%
International
Equities 35%
Unit Trust % Holding
International
(THS Partners)
15%
UK High Income (Invesco
Perpetual)
15%
Equity Income (Schroder) 15%
Corporate Bond (Invesco
Perpetual)
15%
Global (Newton) 14%
Worldwide Opportunities
(Polaris)
14%
Property (Invista) 12%
Source Lipper Hindsight. All data correct as at 30/05/08. Please be aware that past performance is not
indicative of future performance. Minimum investment £3,000.
Property 11%
19. The St. James’s Place
Global Growth Portfolio
International
Equities 73%
Cash & Fixed-
Interest
8%
UK Equities
19%
Unit Trust % Holding
International
(THS Partners)
30%
Global (Newton) 30%
Worldwide
Opportunities
(Polaris)
30%
UK Growth
(MPC Investors)
10%
Source Lipper Hindsight. All data correct as at 30/05/08. Please be aware that past performance is
not indicative of future performance. Minimum investment £3,000.