For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220721:nRSU1930Ta&default-theme=true
RNS Number : 1930T AJ Bell PLC 21 July 2022
21 July 2022
AJ Bell plc
Q3 trading update
AJ Bell plc ("AJ Bell" or the "Company"), one of the UK's largest investment
platforms, today issues a trading update in respect of the three months ended
30 June 2022.
Performance overview
Platform business
· Customer numbers increased by 14,120 in the quarter to close at 417,503, up
18% in the last year and 4% in the quarter, which represents strong ongoing
organic growth in what is an uncertain economic environment
o Total advised customers of 141,856, up 16% in the last year and 3% in the
quarter
o Total D2C customers of 275,647, up 20% in the last year and 4% in the
quarter
· AUA closed at £63.5 billion, marginally up over the last year and down 5% in
the quarter, primarily due to adverse market movements. During the quarter the
FTSE All-Share Index fell by 6% whilst the MSCI World Index (GBP) fell by 9%
· Net inflows were in line with those for Q2 across both the advised and D2C
channels, although weaker investor sentiment in Q3 relative to the comparative
quarter in 2021 led to a year-on-year decline
o Gross inflows in the quarter of £2.6 billion (2021: £3.2 billion)
o Net inflows in the quarter of £1.6 billion (2021: £2.1 billion)
· Dodl by AJ Bell ("Dodl") was launched successfully in April. Customer and AUA
numbers relating to Dodl are included within the D2C platform totals
AJ Bell Investments
· Assets under management ("AUM") closed at £2.5 billion, up 25% over the last
year and up 9% in the quarter
· Net inflows in the quarter were £271 million, in line with the underlying net
inflows reported in the comparative quarter last year
Non-platform business
· Customer numbers remained broadly flat, closing at 14,947
· Net outflows in the quarter were £1.7 billion (2021: £0.3 billion), which
reflected what was the final outflow of £1.7 billion in relation to the
previously announced closure of AJ Bell's institutional stockbroking business
· As set out in previous guidance, the closure of the low margin institutional
stockbroking business will not have a material impact on AJ Bell's financial
performance
Andy Bell, Chief Executive Officer at AJ Bell, commented:
"Our trusted, dual-channel investment platform has continued to attract
thousands of new customers looking to invest for their future, despite a
weakening in investor sentiment over the last six months. During our third
quarter, platform customer numbers continued on an upward trajectory and
closed 18% higher than in the previous year, whilst platform net inflows of
£1.6 billion were in line with Q2, a traditionally strong quarter which
benefits from the increase in customer activity in the run up to tax year end.
"The advised market has remained resilient in the face of current market
headwinds and the strength of our proposition helped to deliver net inflows of
£0.9 billion. We have recently reduced several charges on our advised
platform, AJ Bell Investcentre, utilising our scale to further increase the
value that advisers can offer to their clients. The phased launch of Touch by
AJ Bell starting later in 2022 will further expand our offering for advisers,
helping them to cater for clients looking for a digital service model.
"Our D2C platform delivered net inflows of £0.7 billion during the quarter,
predominantly via our fast-growing AJ Bell Youinvest proposition. We have
continued to enhance the value of that proposition for our customers, by
making it easier to use and reducing our charges. During the quarter we also
launched Dodl by AJ Bell, our new low-cost, commission-free investing app
aimed at less experienced investors. We continue to develop this new
proposition, with the ability to transfer-in from other providers soon to be
launched and the addition of US shares to follow.
"Our investments business is delivering on its commitment to offer a wide
choice of investment solutions at low cost and with clear communications. Our
investment solutions have outperformed against most competing products over
the last 5 years, which is why they are valued by financial advisers, their
clients and our retail customers. Net inflows of £271 million in the quarter
equated to a healthy 12% of opening AUM, with total AUM hitting £2.5 billion.
"Overall, our business continues to perform well and our long-term growth
prospects remain strong. The continued development of our customer
propositions, together with our highly competitive pricing and strong customer
service, means we are well positioned to continue growing the business and
increasing our market share."
Advised Platform D2C Platform Total Platform Non-platform
Three months ended Total
30 June 2022
Opening customers 137,201 266,182 403,383 14,926 418,309
Closing customers 141,856 275,647 417,503 14,947 432,450
AUA and AUM (£billion)
Opening AUA 46.5 20.4 66.9 7.2 74.1
Inflows((1)) 1.5 1.1 2.6 0.1 2.7
Outflows((2)) (0.6) (0.4) (1.0) (1.8) (2.8)
Net inflows/(outflows) 0.9 0.7 1.6 (1.7) (0.1)
Market and other movements((3)) (3.1) (1.9) (5.0) (0.3) (5.3)
Closing AUA 44.3 19.2 63.5 5.2 68.7
Closing AUM 1.4 1.0 2.4((4)) 0.1((5)) 2.5
Three months ended Advised Platform D2C Platform Total Platform Non-platform
30 June 2021 Total
Opening customers 118,509 213,767 332,276 14,521 346,797
Closing customers 122,757 230,542 353,299 14,734 368,033
AUA and AUM (£billion)
Opening AUA 41.1 16.9 58.0 7.2 65.2
Inflows((1)) 1.8 1.4 3.2 0.1 3.3
Outflows((2)) (0.7) (0.4) (1.1) (0.4) (1.5)
Net inflows/(outflows) 1.1 1.0 2.1 (0.3) 1.8
Market and other movements((3)) 2.0 1.0 3.0 0.4 3.4
Closing AUA 44.2 18.9 63.1 7.3 70.4
Closing AUM 1.2 0.7 1.9((4)) 0.1((5)) 2.0
( )
((1) Transfers-in, subscriptions, contributions and tax relief)
((2) T)(ransfers-out, cash withdrawals, benefits and tax payments)
((3) Total i)(nvestment returns and revaluations, net of charges and taxes)
((4) Platform AUA which is held in AJ Bell's Funds or Managed Portfolio
Service)
((5) Assets which are held in AJ Bell's Funds or Managed Portfolio Service via
third-party platforms)
( )
Contacts:
AJ Bell
· Shaun Yates, Investor Relations Director +44 (0) 7522 235 898
· Charlie Musson, Brand and PR Director +44 (0) 7834 499 554
Historical customer numbers, AUA and AUM by quarter
Advised Platform Qtr to 30 Qtr to 30 Qtr to 31 Qtr to 31 Qtr to 30
June September December March June
2021 2021 2021 2022 2022
Customers 122,757 126,920 131,610 137,201 141,856
AUA and AUM (£billion)
Opening AUA 41.1 44.2 45.8 47.5 46.5
Inflows((1)) 1.8 1.7 1.6 1.6 1.5
Outflows((2)) (0.7) (0.7) (1.0) (0.7) (0.6)
Net inflows 1.1 1.0 0.6 0.9 0.9
Market and other movements((3))
2.0 0.6 1.1 (1.9) (3.1)
Closing AUA 44.2 45.8 47.5 46.5 44.3
Closing AUM((4)) 1.2 1.3 1.2 1.4 1.4
D2C Platform Qtr to 30 Qtr to 30 Qtr to 31 Qtr to 31 Qtr to 30
June September December March June
2021 2021 2021 2022 2022
Customers 230,542 241,045 251,664 266,182 275,647
AUA and AUM (£billion)
Opening AUA 16.9 18.9 19.5 20.6 20.4
Inflows((1)) 1.4 1.0 1.1 1.1 1.1
Outflows((2)) (0.4) (0.4) (0.3) (0.4) (0.4)
Net inflows 1.0 0.6 0.8 0.7 0.7
Market and other movements((3))
1.0 - 0.3 (0.9) (1.9)
Closing AUA 18.9 19.5 20.6 20.4 19.2
Closing AUM((4)) 0.7 0.8 0.9 0.9 1.0
Non-platform Qtr to 30 Qtr to 30 Qtr to 31 Qtr to 31 Qtr to 30
June September December March June
2021 2021 2021 2022 2022
Customers 14,734 14,789 14,792 14,926 14,947
AUA and AUM (£billion)
Opening AUA 7.2 7.3 7.5 7.5 7.2
Inflows((1)) 0.1 - 0.1 - 0.1
Outflows((2)) (0.4) (0.1) (0.2) (0.1) (1.8)
Net outflows (0.3) (0.1) (0.1) (0.1) (1.7)
Market and other movements((3))
0.4 0.3 0.1 (0.2) (0.3)
Closing AUA 7.3 7.5 7.5 7.2 5.2
Closing AUM((5)) 0.1 0.1 - - 0.1
Total closing AUA 70.4 72.8 75.6 74.1 68.7
Total closing AUM 2.0 2.2 2.1 2.3 2.5
( )
((1) Transfers-in, subscriptions, contributions and tax relief)
((2) T)(ransfers-out, cash withdrawals, benefits and tax payments)
((3) Total i)(nvestment returns and revaluations, net of charges and taxes)
((4) Platform AUA which is held in AJ Bell's Funds or Managed Portfolio
Service)
((5) Assets which are held in AJ Bell's Funds or Managed Portfolio Service via
third-party platforms)
About AJ Bell:
Established in 1995, AJ Bell is one of the largest investment platforms in the
UK, operating at scale in both the advised and direct-to-consumer markets.
Our purpose is to help people invest by providing them with easy-to-use online
services and information to help them build and manage their portfolios.
We do that via our three platform propositions - AJ Bell Investcentre in the
advised market and AJ Bell Youinvest and Dodl by AJ Bell in the
direct-to-consumer market, which all give investors access to Pensions, ISAs
and General Investment / Dealing Accounts.
AJ Bell Investcentre and AJ Bell Youinvest provide access to a broad
investment range including shares and other instruments traded on the major
stock exchanges around the world, as well as all mainstream collective
investments available in the UK and our own range of AJ Bell funds.
Dodl by AJ Bell offers a simplified investment range to make it easier for
customers to choose investments and buy and sell them without paying any
commission.
We also offer a Cash savings hub via AJ Bell Youinvest which provides access
to a range of competitive savings accounts to help people manage their cash
savings.
AJ Bell is headquartered in Manchester, UK, with offices in London and
Bristol.
Forward-looking statements
This announcement contains forward-looking statements that involve substantial
risks and uncertainties, and actual results and developments may differ
materially from those expressed or implied by these statements. These
forward-looking statements are statements regarding AJ Bell's intentions,
beliefs or current expectations concerning, among other things, its results of
operations, financial condition, prospects, growth, strategies, and the
industry in which it operates. By their nature, forward-looking statements
involve risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. These forward-looking
statements speak only as of the date of this announcement and AJ Bell does not
undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after the date
of this announcement.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTPPUGWMUPPGAU