What it means to become a client

ST. JAMES’S PLACE
WEALTH MANAGEMENT
WHAT IT MEANS TO BE A CLIENT

Contents
About us 3
The strength of the Partnership 8
Our investment management approach 11
Benefits of our approach 16
What our clients think 18
How do we compare? 24
Appendices 32
2

About my Practice
• Part of the award-winning St. James’s Place Wealth 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 Inheritance Tax planning, through to investment
management that offers direct access to many of the top fund management
teams across the globe
3

About St. James’s Place
• A leading UK wealth management organisation
• Founded in 1991
• A FTSE 100 company with a market capitalisation of c.£4.5 billion
• £55 billion client funds under management
• Over 2,100 Partner Practices of the St. James’s Place Partnership
• Supported by over 1,000 employees
All information as at May 2015.
4

Our Covenant
• 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.
5

The St. James’s Place Advice 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.
6

What we provide
• 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 online Wealth Account
• 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 Stamford Associates and other specialist
fund consultants including Redington, AON
Hewitt, ARC and Inalytics
Products and services offered by St. James’s Place include those that may put your capital at risk.
*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.
7

The strength of the Partnership
8

The St. James’s Place Partnership
Partners
• They are called Partners because of the way they
work in partnership with you
2%
5%
22%
• Over 2,100 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)
Overseas Partners: 2%
4%
12%
4%
9%
22%
18%
• Exclusive access to St. James’s Place investment
approach and services
• Supported by specialist technical and compliance
professionals
• Focussed on maintaining long-term relationships
9

What is your investment management approach?
There are some important questions we think all clients need to carefully
consider when it comes to investing:
• 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?
10

Our investment management approach
11

Our approach to investment management
‘INDEPENDENT EXPERTISE’
Peter
Dunscombe
Win
Robbins
Davina
Curling
Steven
Daniels
THE
INVESTMENT
COMMITTEE
Stamford
Associates
‘MANAGES THE MANAGERS’
Appoints the
Fund Managers
Sets performance
objectives
Risk management
and strategy
Decisions:
Change firm?
Change manager?
No change?
12

Independent guidance and expertise
Peter Dunscombe
Win Robbins
Davina Curling
Steven Daniels
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.
Trustee Director of Now
Pensions Trust. Trustee
for Landesbanken Baden–
Wuerttenberg Pension
Fund. Director of City
Merchants High Yield Trust.
Non-executive director of
Invesco Income Growth Trust
and board member of
BlackRock Greater European
Trust. Former Managing
Director at Russell
Investments.
Chief Investment Officer of
Tesco Staff Pension Scheme
and Investment Committee
member of the Alzheimer’s
Society. Former Group
Chief Investment Officer
at Liverpool Victoria
Friendly Society.
13

Stamford Associates
Independent Investment Consultancy
Research Fund
Manager Market
Monitor Managers
and Portfolios
Advise Investment
Committee
Access to
Whole Market
Qualitative and
Quantitative
Focus on Future
Outperformance
• Analyse & identify talented
managers
• Gather intelligence
• Data analysis
• Monitor activity
• Behavioural psychology
• Workplace analysis
Recommend:
• Potential changes
• New managers
14

Global Investment Management Expertise
S.W. Mitchell Capital llp
33
funds
30
fund houses
14
exclusive to
UK retail
investors
59
lead fund
managers
8
asset classes/
strategies
14
cities
15

Benefits of our approach
• 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
• Whole of market for specialist
products
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.
16

Whole of market * approach
*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.
SIP SERVICES
17

The key findings were:
What our clients think
• 83% * are highly satisfied with their relationship with St. James’s Place –
a third scoring us 10 out of 10
• 81% * are highly satisfied with the relationship they have with their adviser
• 88% * agreed that we provide excellent client service
• 82% * are satisfied in the way in which we communicate with them
• 98% ** have recommended or would recommend St. James’s Place
to others
• 84% * would definitely invest with St. James’s Place again if making that
decision today
* Scoring 8 or more out of 10.
* Ledbury Research – November/December 2014.
** Wealth Account Survey, January 2015.
18

What our clients say about us *
‘‘
‘‘
‘‘
‘‘
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.
19

What our clients say about us *
‘‘
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.
20

21

Award-winning
2015
• City of London Wealth Management Company of the Year
2014
• Britain’s Most Admired Companies Award – Top in Sector
• Wealth Adviser – Best Private Client Investment Manager
• City of London Wealth Management Awards –
Best Performing Fund
• The Personal Finance Awards – Best Financial Adviser
• Morningstar UK Fund Awards – Best Global Equity Fund
2013
• Britain’s Most Admired Companies Award – Top in Sector
• Shares Awards – Best Wealth Manager
• Wealth Adviser – Best Private Client Asset Manager UK
• City of London Wealth Management Company of the Year
2013 continued
• FT and Investors Chronicle – Best Wealth Manager for
Tax Efficient Investments
• The Personal Finance Awards – Best Financial Adviser
2012
• FT and Investors Chronicle – Wealth Manager of the Year
• City of London Wealth Management Company of the Year
• UK Stock Market Awards Winner
• The Personal Finance Awards – Best Financial Adviser
2011
• FT and Investors Chronicle – Best Wealth Manager for Tax
• The Personal Finance Awards – Best Financial Adviser
2010
• Daily Telegraph Wealth Manager of the Year
22

Award winning in 2014/2015
ST. JAMES’S PLACE WEALTH MANAGEMENT
AWARDS 2015
23

How do we compare?
24

How do we compare?
• 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.
25

Transparent is not comparable
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
26

Transparent... but not simple
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.
Initial advice fee
% of initial investment
OR
Hourly rate (£)
Tiered fee based on amount invested + VAT
Rate may depend on seniority of adviser
Advice
Ongoing advice fee
% of Funds Under Management
OR
Hourly rate (£)
Tiered fee based on fund value
Rate may depend on seniority of adviser
Administration fee
% of Funds Under Management
OR
Prescribed fees (£)
Amount based on fund value
Amount may depend on activity
Annual charge (%)
Tiered fee based on fund value
Platform/Admin
Account fee (£)
Transaction charges
% of Funds Under Management
OR
Prescribed fees (£)
Amount will depend on platform provider
Amount per transaction
Tiered fee based on transaction size
Insurance Company
Wrapper charges
Administration fee
Amount based on fund value
Amount will depend on insurance company
Fund Management
Annual management charges (£)
Additional miscellaneous costs
Amount based on value of funds under management
Amount based on value of funds under management
27

Total charge comparisons
• Wealth Manager D
• Adviser A
• Adviser B
• DFM B
• Adviser D
• Adviser C
• Wealth Manager A
• DFM C
• DFM A
• Bank A
• Adviser E *
3.7% p.a.
3.5% p.a.
3.3% p.a.
3.0% p.a.
3.0% p.a.
2.9% p.a.
2.7% p.a.
2.6% p.a.
2.6% p.a.
2.6% p.a.
2.5% p.a.
• Adviser F
• Wealth Manager C
• DFM D
• Bank B
• St. James’s Place
• Bank C
• Wealth Manager B **
• Provider
• Bank D
• Adviser G
2.5% p.a.
2.5% p.a.
2.5% p.a.
2.4% p.a.
2.4% p.a.
2.4% p.a.
2.3% p.a.
2.2% p.a.
2.1% p.a.
1.9% p.a.
*Adviser E does not accept portfolios of less than £200,000, so the level of charges shown is not available in practice.
**Wealth Manager B charges calculated based on a portfolio of £200,000, as minimum fees distort the position below this (3.4% for £100k).
The figures shown have been produced by Grant Thornton, an external consultancy. They show the Reduction in Yield over 10 years for a
£100,000 investment into unwrapped mutual funds (Unit Trust, OEIC or equivalent), assuming 5% p.a. fund growth.
Grant Thornton has collated and computed data in the attached table from publicly available information, and some mystery shopping face-to-face
meetings, as at December 2014 for use by St. James’s Place and its Partners. Grant Thornton 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.
28

The St. James’s Place approach
• 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 Place
Wealth 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.
29

Who stands behind the advice?
• How safe is your adviser’s firm? – Berkeley Berry Birch,
Inter-Alliance, Millfield, Money Portal, Burns Anderson,
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?
30

Service Standards Charter
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 Place Advice 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.
31

Appendices
32

Our Executive Board
We are an independently quoted company with a Board of Directors which in turn
has a majority of Independent Non-Executive Directors
Chairman
Executive Directors
Independent Non-Executives
Sarah Bates
David Bellamy
Chief Executive
Andrew Croft
Chief Financial
Officer
Simon Jeffreys
Iain Cornish
Ian Gascoigne
Managing
Director,
Partnership
David Lamb
Managing
Director,
Business
Development
Baroness
Wheatcroft
Roger
Yates
33

Governance
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
34

50
Funds under management
19.4% p.a. compound growth over the last 5 years and 18.5% p.a. over last 10 years*
+27%
+17% +7%
52.0
55.8
£ billion
40
30
20
10
+20%
+29%
+25% +18% -10%
+31%
+26% +6% +22%
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Q1
*As at 31 December 2014
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.
35

ST. JAMES’S PLACE
WEALTH MANAGEMENT
MAY 2015
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 represent St. James’s Place Wealth Management plc, which is authorised and regulated by the Financial Conduct Authority.
St. James’s Place Wealth Management plc, St. James’s Place UK plc, St. James’s Place Unit Trust Group Ltd and St. James’s Place International plc
are members of the St. James’s Place Wealth Management Group.
St. James’s Place UK plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
St. James’s Place Unit Trust Group Ltd is authorised and regulated by the Financial Conduct Authority.
St. James’s Place International plc is authorised and regulated by the Central Bank of Ireland.
St. James’s Place Wealth Management plc Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom.
Registered in England Number 4113955.
SJP4150-VR10 (05/15)