REG - AJ Bell PLC - Q1 Trading Update
18/01/2024 07:00
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RNS Number : 0659A AJ Bell PLC 18 January 2024
18 January 2024
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 2023.
Performance overview
Platform business
· Customer numbers increased by 8,000 to close at 484,000, up 12% in the last
year and 2% in the quarter
o Total advised customers of 161,000, up 8% in the last year and 1% in the
quarter
o Total D2C customers of 323,000, up 13% in the last year and 2% in the
quarter
· Record assets under administration ("AUA") of £76.2 billion, up 15% in the
last year and 7% in the quarter
· A significant year-on-year increase in gross and net inflows across the
platform
o Gross inflows in the quarter of £2.7 billion (2023: £1.9 billion)
o Net inflows in the quarter of £1.3 billion (2023: £0.8 billion)
AJ Bell Investments
· Assets under management ("AUM") of £5.2 billion, up 53% in the last year and
11% in the quarter
· Net inflows in the quarter of £0.4 billion, in line with the prior year
(2023: £0.4 billion)
Michael Summersgill, Chief Executive Officer at AJ Bell, commented:
"I am delighted to report an excellent start to the financial year, with first
quarter net inflows across the platform being higher than in any individual
quarter of FY23. Together with favourable market movements, platform assets
under administration increased by 7% to reach a record £76.2 billion.
"Some of the macroeconomic headwinds experienced throughout 2023 showed signs
of improving in the quarter, driving global equity markets higher and easing
some of the pressure on household finances. Platform net inflows of £1.3
billion in the quarter were up 63% on the £0.8 billion reported in the prior
year, reflecting increased confidence among retail investors compared to a
year ago.
"AJ Bell Investments continues to perform strongly with AUM up 11% in the
quarter through a combination of strong net inflows and positive market
movements, surpassing £5 billion for the first time. The consistently strong
growth of our investment business illustrates the attractiveness of our
low-cost, simple products.
"As we look ahead, our platform will continue to appeal to both current and
potential customers and advisers. We continue to invest in enhancing our
propositions, with a strong focus on ease of use, whilst also investing in our
pricing to ensure we continue to deliver great value to customers. Following
the FCA's recent clarification of its expectations concerning interest paid on
cash balances held on investment platforms, we announced changes to the
interest rates paid on cash balances whilst also lowering a number of our
charges. These changes will benefit our customers to the tune of £14 million
a year, reflecting our longstanding philosophy of sharing our economies of
scale as we grow - an approach that is very much aligned with the Consumer
Duty.
"Our dual-channel model has proven its resilience during a period of high
inflation over the last 18 months, delivering consistent customer growth and
net inflows. Whilst this strong start to the year provides good momentum as we
head into the busy tax year end period, we remain focused on the long-term
growth opportunity that exists in the platform market and the investments that
we are making into our propositions and pricing will further strengthen our
long-term competitive position."
Three months ended Advised Platform D2C Platform Total Platform Non-platform
31 December 2023 Total
Opening customers (k) 159 317 476 15 491
Closing customers (k) 161 323 484 15 499
AUA and AUM (£billion)
Opening AUA 48.2 22.7 70.9 5.2 76.1
Inflows((1)) 1.5 1.2 2.7 - 2.7
Outflows((2)) (0.9) (0.5) (1.4) - (1.4)
Net inflows 0.6 0.7 1.3 - 1.3
Market and other movements((3)) 2.2 1.8 4.0 0.2 4.2
Closing AUA 51.0 25.2 76.2 5.4 81.6
Closing AUM 2.8 1.4 4.2((4)) 1.0((5)) 5.2
Three months ended Advised Platform D2C Platform Total Platform Non-platform
31 December 2022 Total
Opening customers (k) 146 280 426 15 441
Closing customers (k) 149 285 434 15 449
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
( )
((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
· Mike Glenister, Head of PR +44 (0) 7719 554 575
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
2022 2023 2023 2023 2023
Customers (k) 149 153 157 159 161
AUA and AUM (£billion)
Opening AUA 44.8 46.0 47.3 47.8 48.2
Inflows((1)) 1.2 1.4 1.2 1.2 1.5
Outflows((2)) (0.7) (0.8) (0.8) (0.8) (0.9)
Net inflows 0.5 0.6 0.4 0.4 0.6
Market and other movements((3))
0.7 0.7 0.1 - 2.2
Closing AUA 46.0 47.3 47.8 48.2 51.0
Closing AUM((4)) 1.9 2.1 2.3 2.5 2.8
D2C Platform Qtr to 31 Qtr to 31 Qtr to 30 Qtr to 30 Qtr to 31
December March June September December
2022 2023 2023 2023 2023
Customers (k) 285 302 309 317 323
AUA and AUM (£billion)
Opening AUA 19.3 20.3 21.3 22.0 22.7
Inflows((1)) 0.7 1.1 1.2 1.3 1.2
Outflows((2)) (0.4) (0.5) (0.5) (0.6) (0.5)
Net inflows 0.3 0.6 0.7 0.7 0.7
Market and other movements((3))
0.7 0.4 - - 1.8
Closing AUA 20.3 21.3 22.0 22.7 25.2
Closing AUM((4)) 1.1 1.2 1.3 1.3 1.4
Non-platform Qtr to 31 Qtr to 31 Qtr to 30 Qtr to 30 Qtr to 31
December March June September December
2022 2023 2023 2023 2023
Customers (k) 15 15 15 15 15
AUA and AUM (£billion)
Opening AUA 5.1 5.2 5.2 5.3 5.2
Inflows((1)) - 0.1 - 0.1 -
Outflows((2)) (0.1) - - (0.2) -
Net (outflows)/inflows (0.1) 0.1 - (0.1) -
Market and other movements((3))
0.2 (0.1) 0.1 - 0.2
Closing AUA 5.2 5.2 5.3 5.2 5.4
Closing AUM((5)) 0.4 0.6 0.7 0.9 1.0
Total closing AUA 71.5 73.8 75.1 76.1 81.6
Total closing AUM 3.4 3.9 4.3 4.7 5.2
( )
((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 AJ Bell Dodl, 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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