Good morning, and welcome to our 2022 half year results. As is now customary, today's presentation is being prerecorded, and we'll be hosting a live Q&A at 9:30 A.M. The agenda for this morning, in a moment I will run through the new business figures, then hand over to Craig to cover the financial results. It's then back to me to cover a number of other topics, the continued positive medium to long-term prospects for an advice business like St. James's Place, how the business has performed during other difficult market conditions, and then finish on the immediate outlook. It goes without saying that the wider macro environment has caused difficult trading conditions in the first half of 2022. Sharply rising inflation, volatile stock markets, the invasion of Ukraine, and more recently, political uncertainty in the U.K.
It's also worth remembering that in 2021, we experienced growth in gross and net flows of 27% and 34% respectively. Therefore, whilst we started 2022 with strong momentum, we knew the comparators were tough, and we're therefore not being distracted by the year-on-year growth percentages, which have been distorted by that bumper 2021. With this in mind, the new business flows we have reported are strong, and we're very pleased with them. We attracted GBP 9.1 billion of gross inflows, the second-highest H1 in our history. The strong performance reflects the fact that we are an advice-led business, which helps clients plan and save for the future through long-term investment wrappers. Given the backdrop, it is also important for clients to receive advice from their advisor, and where necessary, take action to remain on track for their futures.
Consequently, our advisors have been busier than ever helping them to do that. Helping clients to stay on track is a key reason why our retention has remained strong, despite the pressures of inflation and weak markets. This type of environment is not easy for clients, so it is important that through their advisors, they retain a long-term mindset. The result of gross inflows and retention is of course net inflows, which were GBP 5.5 billion in the first half, in line with 2021. Now I just want to pause here in order to put the first half new business figures in historic context. Let's start by looking at the quarterly progression of gross flows for 2019 and 2020. This clearly shows the impact of lockdowns, and in particular, the lower flows in the second and third quarters of the year.
Importantly, this slide also demonstrates the resilience of the business. We continue to see new client investments of over GBP 3 billion in each of these quarters in what was an unprecedented period. If we now add the 2021 quarterly flows, you can see the strong recovery we experienced last year. Double-digit growth every quarter, with particularly strong growth in the second and third quarters. For completeness, the 2022 quarterly figures relating to the GBP 9.1 billion of gross flows for the half year. Without going through the detail, it's a similar story for net flows. Having framed this context, and considering the challenging conditions we faced in the first half, the resilience of our business performance is something that we are very pleased with. Where does this put us 18 months into our 2025 financial targets?
Well, put simply, we're ahead of where we expected to be, both for the first half of 2022 in isolation, and in terms of the cumulative build of some GBP 100 billion of gross inflows we aim to attract over the five years to 2025. I've demonstrated this on the current slide. Let me explain. The left-hand column for both gross and net flows shows where we would have expected to have been at the half year based on our original 2025 financial target, while the right-hand column shows the actual outcome. At the half year, we would have expected cumulative gross flows to have reached some GBP 24.5 billion. As you can see, we've exceeded this by GBP 2.8 billion, with actual cumulative gross flows of GBP 27.3 billion.
In the case of net flows, we would have expected a cumulative 18-month figure of GBP 14.5 billion, which we have exceeded by GBP 2 billion, with an actual outcome of GBP 16.5 billion. For the first half of 2022 in isolation, our original plan would have envisaged attracting GBP 8.7 billion of gross inflows and GBP 5.5 billion of net inflows. As you can see, our actual column for the first half is ahead of or in line with those expectations. Consequently, on a cumulative basis, this puts us even further ahead of plan than we were at the start of the year. I will cover the partnership in my second session this morning. Before handing over to Craig, I will quickly cover funds under management.
Having started the year at a record GBP 154 billion and then adding GBP 5.5 billion of net flows over the half year, the weaker markets have seen our funds under management move to just over GBP 142 billion. However, over the longer term, funds under management have grown by 11% compound over five years and 16% compound over 10 years. That's it for now, and I'll hand you over to Craig.
Thank you, Andrew. Good morning, everyone. As Andrew said, I'm gonna spend a few moments running through some of the key results for the half year, and in so doing, I'll cover the cash result, embedded value, IFRS, and solvency. For the cash result, I'll start by commenting on the all-important net income from funds under management, which grew by 8% compared to the first half of 2021. That's in spite of one of the most significant point to point market falls in 2022 that global markets have experienced. Of course, the markets have had an impact on the outcome for the first half, but the higher net income figure reflects the momentum in net inflows that Andrew's already commented on, together with maturing gestation balances, which will have contributed some GBP 20 million to the result for the first time.
The margin on net income from FUM remains within the 63 to 65 basis points guidance that we've previously given, and in your models, you should assume that this will remain the case for the second half. Funds in gestation awaiting maturity at the J une 30th stood at GBP 44.5 billion. Although this is lower than last December, it's important to note that this is driven by market values and not retention, which remains very strong. For illustrative purposes, if the gestation balance was mature now, it would be contributing over GBP 390 million to the cash result, free of course from any additional cost.
Our margin arising on new business for the first half stood at GBP 67.4 million, and the 8% reduction against last year broadly reflects a similar level of gross inflows offset by higher allowances that are set with reference to prior year productivity. For controllable overheads, we're now experiencing phasing which is far more consistent with long-term experience, which this slide shows. The run rate for the first half was 47% of the budget for the year, which is broadly consistent with more normal years before 2020. We're clearly in an inflationary environment, but the planning, visibility, and disciplines in place mean that we remain confident that they will grow by no more than 5% for 2022.
You'll note that the half year charge of GBP 131.4 million is 10% higher than for the first half of 2021, but it's critical to remember the impact that lockdowns had in the first half of 2021 because it impacted on phasing and delayed expense into the second half. Asia and DFM both remain on track, and the points at which we anticipate break even on net investment, 2025 and 2024 respectively, remain unchanged. As a reminder, DFM will experience a sharp positive in late 2023 and 2024 as this is the point at which we will have completed the DFM back office rebuild, which has been charged to profit as the expense is incurred.
The result for both of these areas will be broadly in line with guidance for the year, which is a net investment of GBP 10 million for Asia and GBP 11 million for DFM. Turning to FSCS charges, you'll have seen that the industry levy costs were reduced for the year. Our performance, however, and therefore our market share for 2021 grew, which means we bear a greater portion of the reduced pool. We're therefore left with an overall charge for the first half that's largely flat. At this point, we believe that the FSCS cost for the first half will represent the cost for the full year. You should assume, however, that the line will increase by a further GBP 8 million to account for other regulatory costs that will accrue into the second half.
Tax relief from capital losses are significantly ahead of where we expected them to be, but they're a broad reflection of the extreme market conditions that have impacted negatively elsewhere in the cash results. With the markets as volatile as they currently are, it's very difficult to model this figure, and so for the time being, I would include the GBP 13.9 million you see as the total recovery in 2022 in your models. Miscellaneous charges are some GBP 5 million higher than for the first half of 2021. This increase is driven by the market impact of a number of assets held on the balance sheet, combined with a step-up in contributions to the SJP Charitable Foundation.
These were some GBP 2 million higher in 2022 as the charitable foundation resumed a fuller program of fundraising activity during the period, and that's after two years where activity was curtailed due to COVID-related restrictions. Taking all of these items into account, our underlying cash result for the half year was GBP 198.8 million, which is 5% up on last year. Our total cash result was GBP 194.1 million, which is 10% up on last year. A very strong result in an extraordinary operating environment. I'll now turn to embedded value, where there are a number of items worth commenting on. First, much in the same way as we did in the first half of 2021 for bonds and pensions, we've booked an operating assumption change for ISAs and Unit trusts.
This change is included within the GBP 230 million + that you see, and it's been made to reflect longer periods of clients' investments in these wrappers that we've now observed, and which we believe will extend into the future. Having now recently reassessed expected durations on all of our investment products, we don't anticipate any further significant operating assumption changes in the short to medium term. The new business contribution of GBP 525 million reflects broadly similar gross new business for the period, and has contributed to an EV operating profit of GBP 914 million, growth of 8%. The other striking feature of the EV result is the investment return variance driven by market movements.
Although this was extreme at the end of June, it's a feature we're used to seeing when the market's full, and indeed the reverse when they strengthen again. On this occasion, it's driven an EV loss after tax of GBP 208 million. This results in an EV net asset value per share of GBP 15.74. I'll comment briefly on IFRS, but only really to note that the change in the IFRS result before tax is almost entirely attributable to policyholder tax movements, which don't necessarily reflect the economic interests of shareholders. IFRS profit after tax, however, is higher due to increased cash results together with other positive IFRS timing differences. Moving on to solvency, there's no underlying change in our approach, which remains prudent and sustainable for our business model.
On the J une 13th, our solvency ratio for our life companies stood at 139%, which is materially ahead of our approach of holding 110% of the standard formula. This is largely attributable to the mechanics of the equity dampener and other positive IFRS timing differences, which on our capital planning, we assume will reverse over time. Finally, I'll comment on the interim dividend that the board declared this morning, but only to confirm that this is in line with the guidance that we set out in 2021. It's therefore been set at 30% of the total dividend for 2021 and is equal to GBP 0.1559 per share. It will be paid on the September 23rd 2022, and that'll be based on the share register on the August 26th.
Well, that's it for the financials. As you can see, it's very much business as usual in challenging conditions. Our net income from FUM is up by 8%, and we continue to carefully manage our costs. As I know Andrew will cover in a moment, 2022 is showing itself as another example of the momentum and resilience at the core of our business.
Thank you, Craig. As you have just heard, the strong performance in both gross and net flows, together with expense discipline, has resulted in a strong financial performance, which is a testament to the fundamentals of our business model. As I said earlier, in this section of today's presentation, I'm going to cover a few highlights on our six business priorities. I will then cover the positive medium to long-term outlook and how the business has performed during other periods of difficult market conditions before finishing on the immediate outlook. A reminder of our six business priorities. Craig has already commented on the continued financial strength of the business, and I'm pleased to say we've made good progress across the other five priorities. Some highlights. During the six months, we have attracted a net 70 advisors to the partnership through a combination of recruiting experienced advisors and academy graduations.
Growth of 1.5%. This takes the size of the partnership to 4,626 advisors who are all advising and helping more than 900,000 clients with their long-term financial planning, as well as how to think about the near-term environment. Furthermore, the pipeline of experienced recruits remains strong, while the academy continues to go from strength to strength. During the first half of the year, 158 individuals have joined the academy, with the capacity for new recruits increasing to some 300 this year and then 400 per annum from 2023. Not only is the academy a key strategic enabler in helping us to grow the partnership, but it brings other benefits.
These stem from the fact that our academy brings new blood to the partnership and the wider industry, with 25% of our new advisors in 2021 being under the age of 30. This contributed to the average age of all new joiners being under 40, which in turn means that the average age of the partnership is 46. Considerably younger than the average age of advisors across the advice sector, and very helpful for succession planning across the partnership. Younger advisors also help to attract younger clients and capture the intergenerational transfer of wealth. It is no coincidence that around 20% of new clients during 2021 were also under the age of 30. As I and my predecessors have consistently said before, the partnership is the leading edge of what we do, and it's through the partnership that we deliver for clients.
A key component of our advice proposition is through our investment management approach, and it has always been a key priority for this to deliver value to clients. To continue to drive the right client outcomes, in the first half of the year, we made changes to our Global Growth and Emerging Markets funds, appointing additional managers to those funds, as well as amending other elements of the mandate. A strong partnership and investment proposition will continue to deliver great client outcomes. This has always been at the heart of what we have strived to achieve, and we welcome the FCA's new Consumer Duty proposals. Moving on to other business priorities.
We launched our refreshed brand identity earlier this year and have made good progress in rolling out our new brand assets. The refreshed brand has been positively received by our stakeholders, so we look forward to the long-term benefits this will deliver over time. Our new mobile app has been soft launched for testing with over 3,000 employees and advisors. Full launch is planned for later this year. After two years of COVID restrictions, I'm pleased to say we've been able to resume a fuller program of fundraising events for our charitable foundation, with GBP 5.6 million raised in the first half. The foundation remains an important cornerstone to our wider responsible business framework. I want to turn now to the medium to long-term outlook.
We are in a period of high inflation, rising interest rates, together with the possibility of a recession, all compounded by the ongoing war in Ukraine and increasing geopolitical tensions. However, we do not consider that these factors have changed the medium to long-term outlook for the U.K. wealth and savings market, and especially for an advice business like St. James's Place. I know I sound like a stuck record here, but it's worth repeating why we're excited about the future. The market is large and growing, and this is driven by favorable demographics with people living longer. The transfer of responsibility for retirement savings from the state and corporate to the individual, and alongside these, there's a considerable and growing savings gap. We have the ever-present complexity in the tax and savings environment, the uncertainty around the direction of investment markets and inflation for that matter.
There's also a very large but inherently complex intergenerational transfer of wealth that is starting to occur. In other words, the need for advice is continuing to grow. Meanwhile, there's an insufficient pool of advisors in the U.K. to meet this rising demand, contributing to an advice gap. Let's not forget, there are high barriers to entry. All these factors contribute to a perfect environment for St. James's Place to continue to grow and thrive over time. Next, I want to turn to how the business has performed during past periods where we've experienced challenging market conditions. Looking back over my 30 years in the business, four important observations stand out to me from these times. First, we have a resilient business. Second, having a trusted advisor becomes ever more important. Third, the experience we have across the business puts us in good stead for whatever lies ahead.
The fourth standout is that once external conditions stabilize, we can be confident we will see an acceleration of flows. Let's look at each of these in turn, with the following slide showing our net inflows by quarter since the start of 2008. You would have seen this slide previously, but I think it's a great slide as it shows so powerfully the resilience of our business, no matter what you throw at it. We have recorded net inflows every quarter through all market conditions. Net inflows during those challenging years of the financial crisis back in 2008. Net inflows during the recent pandemic. Of course, net inflows during the current market conditions. How do we achieve this? Well, quite simply, it's down to the value of advice. Our business is advised, part of a holistic financial plan.
Having a trusted financial advisor provides the confidence to invest and remain invested. Once invested, our advisors provide a steady hand for clients during challenging environments, giving peace of mind that while the near-term environment can be a little scary, this needs to be considered in a long-term context. Furthermore, client investments are held within tax wrappers, are long-term in nature, and invested in an appropriate portfolio to match their objectives. Once invested, the flexibility of our investment proposition means a client can switch between our funds and asset categories free of charge, and in most cases, free of a tax event. They also have the added benefit of knowing that the assets are held on their behalf by SJP, and that we select, monitor, and where necessary, change fund manager. Added to this is the trust that comes from forging long-term, trusted partner-client relationships.
The advice, our investment proposition, and the trusted personal service leads to enduring client relationships, and consequently, strong retention. Strong retention, in turn, translates to those net inflows we experience every quarter, irrespective of prevailing market conditions. I also want to spend a few moments on the experience we have within the business. Many of our advisors, and indeed the leadership team, have experienced the impact of external shocks before. The collapse of Long-Term Capital Management, the dot-com crash, 9/11, and the great financial crisis to name a few. Indeed, the company was established during the ERM crisis of 1992 and the subsequent recession of 1993. Who remembers interest rates of 15%? I certainly do. Why am I making this point?
Quite simply, this experience helps support clients through difficult markets and providing them with peace of mind. For the advisers who do not have first-hand experience, they can reach out and tap into that pool of extensive experience across the business. The final observation that stands out from previous tricky periods is the acceleration of flows once external conditions stabilize. We can be confident that if clients have chosen not to invest with us at this time, they are not investing full stop. We are not losing their business to competitors. Why is this important? Well, history shows us that when conditions stabilize, we see this money being invested and therefore, see a period of accelerated growth, or catch-up, if you like. Let's return to the historic growth chart I showed earlier.
As we emerge from the immediate impact of the financial crisis in 2008 and 2009, we experienced very strong flows throughout 2010. In fact, the acceleration started in the final quarter of 2009. After a tricky period during the height of the European Sovereign Debt crisis, we again experienced a strong acceleration of flows starting in the final quarter of 2012 and continuing throughout 2013. Of course, in more recent history, we experienced a strong acceleration of flows in 2021 as the lockdown rules were relaxed. Whilst I haven't gone back to the experience of the dot-com crash and 9/11, I witnessed similar experience. What does all this mean for the immediate outlook for the business?
Well, we're in tricky markets, and while none of us have a crystal ball, we can look to the past and those observations on how the business has performed historically to help guide us to the future. If current market conditions persist, then our expectation for the second half is more of the same, with the full year gross and net flows landing somewhere around GBP 18 billion and GBP 11 billion respectively, which is within the range of consensus. This would result in 2022 being our second-highest year of flows, and consequently, on a cumulative basis, this would put us even further ahead of plan than we were at the start of the year. If external conditions stabilize, then the past informs us that we could experience an acceleration in flows. I will finish with a summary of the results, which you can see on the current slide.
A strong operating and financial performance in challenging market conditions, which, as I said earlier, we're very pleased with. That's it. Thank you for your attention, and as a reminder, the live Q&A starts at 9:30 A.M.