TIDMAJB
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 GBP76.2 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 GBP2.7 billion (2023: GBP1.9
billion)
o Net inflows in the quarter of GBP1.3 billion (2023: GBP0.8
billion)
AJ Bell Investments
-- Assets under management ("AUM") of GBP5.2 billion, up
53% in the last year and 11% in the quarter
-- Net inflows in the quarter of GBP0.4 billion, in line
with the prior year (2023: GBP0.4 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 GBP76.2 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 GBP1.3 billion in the quarter
were up 63% on the GBP0.8 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 GBP5 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 GBP14 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 D2C Platform Total Non-platform
31 December 2023 Platform Platform Total
Opening customers (k) 159 317 476 15 491
Closing customers (k) 161 323 484 15 499
AUA and AUM (GBPbillion)
------------------------------- ---------- ------------- ---------- ------------- --------
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
------------------------------- ---------- ------------- ---------- ------------- --------
4.2 1.0
Closing AUM 2.8 1.4 (4) (5) 5.2
Three months ended Advised D2C Platform Total Non-platform
31 December 2022 Platform Platform Total
Opening customers (k) 146 280 426 15 441
Closing customers (k) 149 285 434 15 449
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
(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
-- Mike Glenister, Head of PR +44 (0) 7719 554 575
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
2022 2023 2023 2023 2023
Customers (k) 149 153 157 159 161
AUA and AUM
(GBPbillion)
------------------ ---------- ------- ------- ----------- ----------
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 Qtr to Qtr to Qtr to Qtr to
31 31 30 30 31
December March June September December
2022 2023 2023 2023 2023
Customers (k) 285 302 309 317 323
AUA and AUM
(GBPbillion)
------------------ ---------- ------- ------- ----------- ----------
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 Qtr to Qtr to Qtr to Qtr to
31 31 30 30 31
December March June September December
2022 2023 2023 2023 2023
Customers (k) 15 15 15 15 15
AUA and AUM
(GBPbillion)
------------------------ ---------- -------- ------- ----------- ----------
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) 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 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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END
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