TIDMAJB

RNS Number : 0479G

AJ Bell PLC

22 July 2021

22 July 2021

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 2021.

Performance overview

Total customer numbers increased to 368,033, up 30% over the last year and 6% in the quarter, with total net inflows in the quarter of GBP1.8 billion (2020: GBP1.2 billion).

Total assets under administration ("AUA") increased to GBP70.4 billion, up 30% over the last year and 8% in the quarter. Over the same quarter the FTSE All-Share Index rose by 4.8% and MSCI World Index rose by 7.2%.

Platform business

AJ Bell's platform business saw continued organic growth in customer numbers, net inflows and AUA:

 
      --   Total platform customers grew by 21,023 in the quarter to close at 
            353,299, up 32% over the last year and 6% in the quarter 
              o Advised customers of 122,757, up 15% over the last year and 4% 
               in the quarter 
               o D2C customers of 230,542, up 42% over the last year and 8% in the 
               quarter 
      --   Platform net inflows increased by 40% over the prior year to GBP2.1 
            billion (2020: GBP1.5 billion) 
              o Advised net inflows of GBP1.1 billion in the quarter, up 57% on 
               the prior year (2020: GBP0.7 billion) 
               o D2C net inflows of GBP1.0 billion in the quarter, up 25% on the 
               prior year (2020: GBP0.8 billion) 
      --   Platform AUA closed at GBP63.1 billion, up 32% over the last year 
            and 9% in the quarter 
 

AJ Bell Investments

 
      --   Assets under management ("AUM") increased to GBP2.0 billion, up 186% 
            over the last year and 43% in the quarter 
      --   Total net inflows in the quarter were GBP524 million, including a 
            one-off inflow of GBP253m 
      --   Underlying net inflows in the quarter were GBP271 million, up 115% 
            on the prior year (2020: GBP126 million) 
 

Andy Bell, Chief Executive Officer at AJ Bell, commented:

"Our easy to use, low cost platform continues to drive our strong organic growth in both the D2C and advised markets, with platform customers up 32% over the year and net inflows up 40% compared to our third quarter last year. This helped total assets under administration hit the GBP70 billion mark for the first time. Our investment business also performed well with assets under management reaching the GBP2 billion milestone just six months after passing GBP1 billion.

"In the D2C market our growing brand awareness, award winning platform and competitive charges have driven customer growth of 42% over the past year. More people are seeking the security and peace of mind that a diversified investment portfolio held on a trusted platform can give them. We are seeing the majority of new customers invest via tax efficient ISAs and pensions as they take control of their financial future.

"In the advised market, third quarter platform inflows were up 57% compared to the prior year. The introduction of simplified pension options is proving particularly popular with advisers as it provides them with different price points and flexible investment options to cater for a diverse range of client needs.

"We also continue to see strong demand for our in-house investment solutions. There is growing awareness amongst financial advisers of the value and performance that our managed portfolio service is delivering to their clients and our multi-asset funds continue to prove popular with advisers and retail customers alike.

"As we head into the final quarter of our financial year, we remain focused on providing an excellent service to our customers and continuing to support our people as we navigate the current wave of the pandemic. Looking further ahead, the structural growth drivers for our sector remain strong and we are well placed to deliver further growth across our platform."

 
 Three months ended                 Advised   D2C Platform       Total   Non-platform     Total 
  30 June 2021                     Platform                   Platform 
 
 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 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Closing AUM                            1.2            0.7     1.9 (4)         0.1(5)       2.0 
 
 
 Three months ended                 Advised   D2C Platform       Total   Non-platform     Total 
  30 June 2020                     Platform                   Platform 
 
 Opening customers                  103,974        144,100     248,074         14,105   262,179 
 Closing customers                  106,335        162,109     268,444         14,175   282,619 
 
 AUA and AUM (GBPbillion) 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Opening AUA                           31.4           10.6        42.0            6.3      48.3 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Inflows(1)                             1.0            1.0         2.0              -       2.0 
 Outflows(2)                          (0.3)          (0.2)       (0.5)          (0.3)     (0.8) 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Net inflows/(outflows)                 0.7            0.8         1.5          (0.3)       1.2 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Market and other movements(3)          3.1            1.1         4.2            0.6       4.8 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 Closing AUA                           35.2           12.5        47.7            6.6      54.3 
-------------------------------  ----------  -------------  ----------  -------------  -------- 
 
 Closing AUM                            0.4            0.3     0.7 (4)              -       0.7 
 

(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, Head of Investor Relations +44 (0) 7522 235 898

-- Charlie Musson, Head of PR +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 
                                2020         2020        2020      2021      2021 
 
 Customers                   106,335      108,911     112,308   118,509   122,757 
 
 AUA and AUM (GBPbillion) 
--------------------------  --------  -----------  ----------  --------  -------- 
 Opening AUA                    31.4         35.2        36.3      39.7      41.1 
--------------------------  --------  -----------  ----------  --------  -------- 
 
 Inflows(1)                      1.0          1.0         1.3       1.5       1.8 
 Outflows(2)                   (0.3)        (0.4)       (0.5)     (0.6)     (0.7) 
--------------------------  --------  -----------  ----------  --------  -------- 
 Net inflows                     0.7          0.6         0.8       0.9       1.1 
--------------------------  --------  -----------  ----------  --------  -------- 
 
 Market and other 
  movements(3)                   3.1          0.5         2.6       0.5       2.0 
 Closing AUA                    35.2         36.3        39.7      41.1      44.2 
                            --------  -----------  ----------  -------- 
 
 Closing AUM(4)                  0.4          0.4         0.6       0.8       1.2 
 
 
 D2C Platform                 Qtr to       Qtr to      Qtr to    Qtr to    Qtr to 
                                  30           30          31        31        30 
                                June    September    December     March      June 
                                2020         2020        2020      2021      2021 
 
 Customers                   162,109      172,183     185,745   213,767   230,542 
 
 AUA and AUM (GBPbillion) 
--------------------------  --------  -----------  ----------  --------  -------- 
 Opening AUA                    10.6         12.5        13.4      15.5      16.9 
--------------------------  --------  -----------  ----------  --------  -------- 
 
 Inflows(1)                      1.0          0.6         0.9       1.3       1.4 
 Outflows(2)                   (0.2)        (0.3)       (0.2)     (0.4)     (0.4) 
--------------------------  --------  -----------  ----------  --------  -------- 
 Net inflows                     0.8          0.3         0.7       0.9       1.0 
--------------------------  --------  -----------  ----------  --------  -------- 
 
 Market and other 
  movements(3)                   1.1          0.6         1.4       0.5       1.0 
--------------------------  --------  -----------  ----------  --------  -------- 
 Closing AUA                    12.5         13.4        15.5      16.9      18.9 
--------------------------  --------  -----------  ----------  --------  -------- 
 
 Closing AUM(4)                  0.3          0.4         0.4       0.6       0.7 
 
 
 Non-platform                Qtr to       Qtr to      Qtr to   Qtr to   Qtr to 
                                 30           30          31       31       30 
                               June    September    December    March     June 
                               2020         2020        2020     2021     2021 
 
 Customers                   14,175       14,211      14,256   14,521   14,734 
 
 AUA and AUM (GBPbillion) 
--------------------------  -------  -----------  ----------  -------  ------- 
 Opening AUA                    6.3          6.6         6.8      7.3      7.2 
--------------------------  -------  -----------  ----------  -------  ------- 
 
 Inflows(1)                       -          0.1         0.1        -      0.1 
 Outflows(2)                  (0.3)        (0.1)           -    (0.3)    (0.4) 
--------------------------  -------  -----------  ----------  -------  ------- 
 Net (outflows)/inflows       (0.3)            -         0.1    (0.3)    (0.3) 
--------------------------  -------  -----------  ----------  -------  ------- 
 
 Market and other 
  movements(3)                  0.6          0.2         0.4      0.2      0.4 
--------------------------  -------  -----------  ----------  -------  ------- 
 Closing AUA                    6.6          6.8         7.3      7.2      7.3 
--------------------------  -------  -----------  ----------  -------  ------- 
 
 Closing AUM(5)                   -            -           -        -      0.1 
 
 Total closing 
  AUA                          54.3         56.5        62.5     65.2     70.4 
--------------------------  -------  -----------  ----------  -------  ------- 
 
 Total closing 
  AUM                           0.7          0.8         1.0      1.4      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

About AJ Bell:

Established in 1995, AJ Bell is one of the largest investment platforms in the UK.

We operate in both the advised and direct-to-consumer segments of the platform market and our flagship platform propositions are AJ Bell Investcentre (adviser) and AJ Bell Youinvest (direct-to-consumer).

We offer SIPPs, ISAs and General Investment / Dealing Accounts which 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. We also offer a Cash savings hub which provides access to a range of competitive savings accounts to help people manage their cash savings.

We aim to make it easy for our customers to save and invest by providing them with online tools and information to help them build and manage their portfolios.

AJ Bell is headquartered in Manchester, UK.

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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