St James's Place - Investment Management Approach

ST. JAMES’S PLACE WEALTH MANAGEMENT

WHAT IT MEANS TO BE A CLIENT

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Contents

About us 4

Our investment management approach 11

What our clients think 17

Appendices 23

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• 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

• Provision of holistic financial planning and the very best client service including the use of trusted third parties to provide 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

The St. James’s Place approach to investment management only applies to St. James’s Place products.

About my Practice

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• A leading UK wealth management organisation

• Founded in 1991

• A FTSE 100 company with a market capitalisation of c.£4.5bn

• £54.5 billion client funds under management

• Over 2,100 Partner Practices of the St. James’s Place Partnership

• Supported by over 1,000 employees

• In Asia since 1990, previously as The Henley Group, with offices in Hong Kong, Shanghai and Singapore

About St. James’s Place

All information as at 30 September 2015.

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• 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 personal 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*

Our Covenant

*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.

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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.

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• 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

• Ongoing management of investments by leading global investment professionals**

• Use of trusted internal and third party experts to provide high quality specialist pensions, tax and trust advice

• Annual and online Wealth Account

• Regular investment updates

• Monitoring by the St. James’s Place Investment Committee**

• Fund manager monitoring and assessment by Stamford Associates, Redington and other respected independent consultants**

What we provide

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.

**The St. James’s Place approach to investment management only applies to St. James’s Place products.

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?

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?

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Our investment management approach


12The St. James’s Place approach to investment management only applies to St. James’s Place products.

Our approach to investment management

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

Stamford Associates

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Independent guidance and expertise

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 European

Trust. Former Managing Director at Russell

Investments.

Win Robbins

Trustee Director of Now Pensions Trust. Trustee

for Landesbanken Baden– Wuerttenberg Pension Fund. Director of City

Merchants High Yield Trust.

Steven Daniels

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.

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Stamford Associates and Redington:independent investment consultancy

Research fundmanager market

Access towhole market

Monitor managersand Portfolios

Qualitative andquantitative

Advise InvestmentCommittee

Focus on futureoutperformance

• Analyse, and identify talented managers

• Gather intelligence

• Data analysis• Monitor activity• Workplace analysis

Recommend:

• New managers• Potential changes


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Global investment management expertise

Please note that not all funds are available in the countries in which we operate. Your Partner will be able to provide further information on those that are available.

35 funds

65 lead fund managers

34 fund houses

8 asset classes/

strategies

14 cities

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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.


• 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

Benefits of our approach

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What our clients think

• 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.

The key findings were:

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‘‘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*

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‘‘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*

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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 & Investors Chronicle – Best Wealth Manager for Tax Efficient Investments

• The Personal Finance Awards – Best Financial Adviser

2012• FT & 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 & Investors Chronicle – Best Wealth Manager for Tax• The Personal Finance Awards – Best Financial Adviser

2010• Daily Telegraph Wealth Manager of the Year

Award-winning

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Award-winning wealth management

AWARDS 2015

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A total commitment to treating our clients fairly and placing their interests at the centre of everything we do:

• 30 days cooling off period for all products

• client illustrations which disclose the cost of advice

• transparent illustrations which are shown net of all charges (including product, fund and Annual Management Charges)

• personal suitability report written for all clients explaining the advice they have received

Treating clients fairly

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Appendices

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Our Executive BoardWe are an independently quoted company with a Board of Directors which in turn

has a majority of Independent Non-Executive Directors

Chairman Executive Directors

David BellamyChief Executive

Andrew CroftChief Financial Officer

Ian GascoigneManaging Director, Partnership

David LambManaging Director, Business Development

Baroness Wheatcroft

Simon Jeffreys Iain Cornish

Roger Yates

Sarah Bates

Independent Non-Executives

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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

26*As at 3O September 2015. 2005-2014 figures illustrate full year results from I January to 31 December. 2015 Q3 figure illustrates 1 January 2015 to 30 September 2015. 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.

Funds under management20% p.a. compound growth over the last 5 years and 18% p.a. over last 10 years*

£ b

illi

on

10

20

30

40

50

02005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Q3

+29%+25%

+18%-10%

+31%

+26% +6%

+22%

+27%

+17%+5%

54.5

The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are the marketing terms used to describe St. James’s Place representatives. Members of the St. James’s Place Partnership in Shanghai represent St. James’s Place (Shanghai) Limited, which is a Wholly Foreign Owned Enterprise (WFOE).

Members of the St. James’s Place Partnership in Singapore represent St. James’s Place (Singapore) Pte. Limited, which is licenced by the Monetary Authority of Singapore and a member of the Association of Financial Advisors (Singapore). Members of the St. James’s Place Partnership in Hong Kong represent St. James’s Place (Hong Kong) Limited,

which is a member of the Hong Kong Confederation of Insurance Brokers, Securities and Futures Commission licenced corporation, and Registered MPF Intermediary. St. James’s Place (Shanghai) Limited, St. James’s Place (Singapore) Pte. Limited and St. James’s Place (Hong Kong) Limited are part of the St. James’s Place Wealth Management Group.

St. James’s Place Wealth Management Group plc Registered Office: St. James’s Place House, 1 Tetbury Road, Cirencester, Gloucestershire, GL7 1FP, United Kingdom. Registered in England Number 4113955.

SJPA9013-VR5 (10/15)

St James's Place - Investment Management Approach

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