Number of Partners
The growth in the number of advisers in the St. James’s Place Partnership contributes to the growth in new business year on year. It is key, not only to recruit good quality advisers, but also to retain those already with us.
During 2012, the number of Partners increased by 8% to 1,788.
New business per Partner APE (£’000)
New business per Partner is a measure of the productivity of the Partnership which has contributed to the growth in new business over recent years.
During 2012, new business per Partner increased by 8% to £432.5k.
Growth in new business APE (£ million)
Growth in new business is measured on the Annual Premium Equivalent (APE) basis (being new regular premiums plus one-tenth of single premiums and unit trust sales).
In 2012, the growth in new business was 16% resulting in compound annual growth of 17% over the last ten years and 18% since inception. The proportion of our own manufactured business for the year was 86%.
Funds under management (£ billion)
The profitability on all measures of the Group is ultimately driven by the income we earn from funds under management (FUM).
During 2012, FUM increased to £34.8 billion representing growth of 22% over the year as a result of £5.6 billion of gross inflows (8% increase) and £3.3 billion in net inflows (4% increase), against the backdrop of recovering markets (a 6% rise in FTSE 100 in 2012).
New business contribution on an EEV basis (£ million)
New business contribution represents the gross margin on the European Embedded Value (EEV) reporting basis emerging from new business sales, less the direct expenses and as such is a measure of the profitability of new business sales.
In 2012, the growth in EEV new business contribution was 13%.
EEV operating profit before tax (£ million)
The EEV reporting basis assesses the full value of the long-term emergence of the shareholder cash returns and our aim is to achieve sustainable growth in this area.
In 2012 we experienced a fall of 2% compared with the prior year but only because of a large positive experience variance in 2011. Adjusting for this difference, we would have experienced growth of 9% year on year.