TIDMAJB
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 GBP63.5 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 GBP2.6 billion (2021: GBP3.2
billion)
o Net inflows in the quarter of GBP1.6 billion (2021: GBP2.1
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 GBP2.5 billion,
up 25% over the last year and up 9% in the quarter
-- Net inflows in the quarter were GBP271 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 GBP1.7 billion (2021: GBP0.3
billion), which reflected what was the final outflow of GBP1.7
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 GBP1.6 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 GBP0.9 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 GBP0.7 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 GBP271 million in the quarter equated to
a healthy 12% of opening AUM, with total AUM hitting GBP2.5
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 D2C Platform Total Non-platform
Three months ended Platform Platform 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 (GBPbillion)
------------------------------- ---------- ------------- ---------- ------------- --------
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
------------------------------- ---------- ------------- ---------- ------------- --------
2.4 0.1
Closing AUM 1.4 1.0 (4) (5) 2.5
Three months ended Advised D2C Platform Total Non-platform
30 June 2021 Platform Platform 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 (GBPbillion)
------------------------------- ---------- ------------- ---------- ------------- --------
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
------------------------------- ---------- ------------- ---------- ------------- --------
1.9 0.1
Closing AUM 1.2 0.7 (4) (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 Qtr to Qtr to Qtr to Qtr to
30 30 31 31 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
(GBPbillion)
------------------ -------- ----------- ---------- -------- --------
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 Qtr to Qtr to Qtr to Qtr to
30 30 31 31 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
(GBPbillion)
------------------ -------- ----------- ---------- -------- --------
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 Qtr to Qtr to Qtr to Qtr to
30 30 31 31 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
(GBPbillion)
------------------ ------- ----------- ---------- -------- --------
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.
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END
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