TIDMAJB
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 GBP66.3 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 GBP1.9 billion (2021: GBP2.7
billion)
o Net inflows in the quarter of GBP0.8 billion (2021: GBP1.4
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 GBP3.4 billion,
up 62% over the last year and up 21% in the quarter
-- Record net inflows in the quarter of GBP443 million,
up 143% versus the comparative period last year (2021:
GBP182 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
GBP0.8 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 GBP443 million in the quarter,
more than double the level achieved in the comparative quarter last
year. Total assets under management passed through the GBP3 billion
milestone in the quarter, closing 62% higher than a year ago at
GBP3.4 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."
Advised D2C Platform Total Non-platform
Three months ended Platform Platform Total
31 December 2022
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 (GBPbillion)
------------------------------- ---------- ------------- ---------- ------------- --------
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
------------------------------- ---------- ------------- ---------- ------------- --------
3.0 0.4
Closing AUM 1.9 1.1 (4) (5) 3.4
Three months ended Advised D2C Platform Total Non-platform
31 December 2021 Platform Platform 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 (GBPbillion)
------------------------------- ---------- ------------- ---------- ------------- --------
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
------------------------------- ---------- ------------- ---------- ------------- --------
2.1
Closing AUM 1.2 0.9 (4) - 2.1
(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
31 31 30 30 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
(GBPbillion)
------------------ ---------- -------- -------- ----------- ----------
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 Qtr to Qtr to Qtr to Qtr to
31 31 30 30 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
(GBPbillion)
------------------ ---------- -------- -------- ----------- ----------
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 Qtr to Qtr to Qtr to Qtr to
31 31 30 30 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
(GBPbillion)
------------------ ---------- -------- -------- ----------- ----------
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) 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
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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END
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