REG - AJ Bell PLC - Q1 Trading Update
19/01/2023 07:00
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RNS Number : 1849N AJ Bell PLC 19 January 2023
19 January 2023
AJ Bell plc
Q1 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
31 December 2022.
Performance overview
Platform business
· Customer numbers increased by 8,713 in the quarter to close at 434,365, up 13%
in the last year and 2% in the quarter
o Total advised customers of 148,636, up 13% in the last year and 2% in the
quarter
o Total D2C customers of 285,729, up 14% in the last year and 2% in the
quarter
· AUA closed at £66.3 billion, down 3% over the last year but up 3% in the
quarter
· Robust gross and net inflows achieved during the quarter against a continued
challenging backdrop, with both the advised and D2C channels contributing to
the growth in AUA
o Gross inflows in the quarter of £1.9 billion (2021: £2.7 billion)
o Net inflows in the quarter of £0.8 billion (2021: £1.4 billion)
· Favourable market movements contributed 2% to AUA growth in the quarter as
global equity markets recovered some of the losses recorded in previous
quarters
AJ Bell Investments
· Assets under management ("AUM") increased to £3.4 billion, up 62% over the
last year and up 21% in the quarter
· Record net inflows in the quarter of £443 million, up 143% versus the
comparative period last year (2021: £182 million underlying net inflows)
· Strong investment performance, with all of AJ Bell's multi-asset growth funds
delivering top quartile returns versus their Investment Association sector
average over the last 3 years
Michael Summersgill, Chief Executive Officer at AJ Bell, commented:
"I am pleased to announce a solid start to the financial year, with our
platform continuing to attract new customers and assets across both the
advised and direct-to-consumer markets. Whilst high inflation has inevitably
squeezed household finances, we delivered £0.8 billion of net inflows to the
platform during the quarter. This performance demonstrates the value of our
dual-channel business model which enables us to capture customer and asset
growth from across the whole platform market.
"Our fast-growing investment business performed very strongly in the quarter.
Customers and advisers alike are attracted to our range of low-cost investment
solutions which have delivered excellent returns for customers in difficult
market conditions. This drove record net inflows of £443 million in the
quarter, more than double the level achieved in the comparative quarter last
year. Total assets under management passed through the £3 billion milestone
in the quarter, closing 62% higher than a year ago at £3.4 billion.
"We have a long track record of delivering organic growth and market share
gains in both the advised and direct-to-consumer markets. Over 50,000 new
customers have been attracted to our platform over the past year and we are
continuing to invest in the development of our customer proposition to make
investing as easy as possible, whilst delivering great value for money.
"In our 2022 annual results in December, we set out plans to invest more in
our brand to support our long-term growth strategy and we are delighted to
have agreed a five-year partnership to sponsor the Great Run series, including
the flagship Great North Run. We will also be launching a new multi-channel
brand advertising campaign before the end of January.
"The tax year end is traditionally our busiest time of year and we are looking
forward to helping customers and advisers make the most of the annual ISA and
pension allowances before the 5 April deadline. We remain positive about the
growth prospects for the investment platform market and are very well
positioned to continue growing our market share."
Three months ended Advised Platform D2C Platform Total Platform Non-platform
31 December 2022 Total
Opening customers 145,371 280,281 425,652 14,937 440,589
Closing customers 148,636 285,729 434,365 14,909 449,274
AUA and AUM (£billion)
Opening AUA 44.8 19.3 64.1 5.1 69.2
Inflows((1)) 1.2 0.7 1.9 - 1.9
Outflows((2)) (0.7) (0.4) (1.1) (0.1) (1.2)
Net inflows/(outflows) 0.5 0.3 0.8 (0.1) 0.7
Market and other movements((3)) 0.7 0.7 1.4 0.2 1.6
Closing AUA 46.0 20.3 66.3 5.2 71.5
Closing AUM 1.9 1.1 3.0((4)) 0.4((5)) 3.4
Three months ended Advised Platform D2C Platform Total Platform Non-platform
31 December 2021 Total
Opening customers 126,920 241,045 367,965 14,789 382,754
Closing customers 131,610 251,664 383,274 14,792 398,066
AUA and AUM (£billion)
Opening AUA 45.8 19.5 65.3 7.5 72.8
Inflows((1)) 1.6 1.1 2.7 0.1 2.8
Outflows((2)) (1.0) (0.3) (1.3) (0.2) (1.5)
Net inflows/(outflows) 0.6 0.8 1.4 (0.1) 1.3
Market and other movements((3)) 1.1 0.3 1.4 0.1 1.5
Closing AUA 47.5 20.6 68.1 7.5 75.6
Closing AUM 1.2 0.9 2.1((4)) - 2.1
( )
((1) Transfers-in, subscriptions, contributions and tax relief)
((2) Transfers-out, cash withdrawals, benefits and tax payments)
((3) Total investment 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 31 Qtr to 31 Qtr to 30 Qtr to 30 Qtr to 31
December March June September December
2021 2022 2022 2022 2022
Customers 131,610 137,201 141,856 145,371 148,636
AUA and AUM (£billion)
Opening AUA 45.8 47.5 46.5 44.3 44.8
Inflows((1)) 1.6 1.6 1.5 1.5 1.2
Outflows((2)) (1.0) (0.7) (0.6) (0.6) (0.7)
Net inflows 0.6 0.9 0.9 0.9 0.5
Market and other movements((3))
1.1 (1.9) (3.1) (0.4) 0.7
Closing AUA 47.5 46.5 44.3 44.8 46.0
Closing AUM((4)) 1.2 1.4 1.4 1.7 1.9
D2C Platform Qtr to 31 Qtr to 31 Qtr to 30 Qtr to 30 Qtr to 31
December March June September December
2021 2022 2022 2022 2022
Customers 251,664 266,182 275,647 280,281 285,729
AUA and AUM (£billion)
Opening AUA 19.5 20.6 20.4 19.2 19.3
Inflows((1)) 1.1 1.1 1.1 0.6 0.7
Outflows((2)) (0.3) (0.4) (0.4) (0.3) (0.4)
Net inflows 0.8 0.7 0.7 0.3 0.3
Market and other movements((3))
0.3 (0.9) (1.9) (0.2) 0.7
Closing AUA 20.6 20.4 19.2 19.3 20.3
Closing AUM((4)) 0.9 0.9 1.0 1.0 1.1
Non-platform Qtr to 31 Qtr to 31 Qtr to 30 Qtr to 30 Qtr to 31
December March June September December
2021 2022 2022 2022 2022
Customers 14,792 14,926 14,947 14,937 14,909
AUA and AUM (£billion)
Opening AUA 7.5 7.5 7.2 5.2 5.1
Inflows((1)) 0.1 - 0.1 - -
Outflows((2)) (0.2) (0.1) (1.8) (0.1) (0.1)
Net outflows (0.1) (0.1) (1.7) (0.1) (0.1)
Market and other movements((3))
0.1 (0.2) (0.3) - 0.2
Closing AUA 7.5 7.2 5.2 5.1 5.2
Closing AUM((5)) - - 0.1 0.1 0.4
Total closing AUA 75.6 74.1 68.7 69.2 71.5
Total closing AUM 2.1 2.3 2.5 2.8 3.4
( )
((1) Transfers-in, subscriptions, contributions and tax relief)
((2) Transfers-out, cash withdrawals, benefits and tax payments)
((3) Total investment 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 access to
Pensions, ISAs and General investment accounts, great customer service and
competitive charges.
Our two core platform propositions are AJ Bell in the D2C market and AJ Bell
Investcentre in the advised market; which both 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.
In the D2C market we also offer Dodl by AJ Bell, a low-cost investment app
with a simplified investment range that makes it easier for customers to
choose investments and buy and sell them without paying any commission.
For D2C cash savers we offer a Cash savings hub which provides access to a
range of competitive savings accounts to help people manage their long-term
cash deposits. 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.
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