AJ Bell plc
Q2 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 March 2023.
Performance overview
Platform business
| · | Customer numbers increased by 20,643 in the quarter to close at 455,008, up 13% in the last year and 5% in the quarter |
| o Total advised customers of 153,400, up 12% in the last year and 3% in the quartero Total D2C customers of 301,608, up 13% in the last year and 6% in the quarter | |
| · | AUA closed at £68.6 billion, up 3% over the last year and 3% in the quarter |
| · | Strong momentum for AUA flows in the run up to the end of the tax year, with £1.2 billion of gross inflows and £0.6 billion of net inflows achieved across the platform in the month of March |
| o Gross inflows in the quarter of £2.5 billion (2022: £2.7 billion)o Net inflows in the quarter of £1.2 billion (2022: £1.6 billion) | |
| · | Favourable market movements contributed 2% to AUA growth in the quarter |
AJ Bell Investments
| · | Assets under management (“AUM”) increased to £3.9 billion, up 70% over the last year and up 15% in the quarter |
| · | Record net inflows in the quarter of £0.5 billion, more than double the level achieved during the comparative period last year (2022: £0.2 billion) |
Michael Summersgill, Chief Executive Officer at AJ Bell, commented:
“I am pleased to report another quarter of robust trading performance which once again demonstrates the strength of our dual-channel business model. We have continued to grow customer numbers and assets under administration across the platform, building on our latest market share gains in both the advised and D2C markets(1).
“We added over 20,000 customers during the quarter and now have over 150,000 advised customers and over 300,000 DIY investors on our platform. The strength of our platform propositions continues to attract and retain high quality customers, with average customer portfolio sizes of £309,000 and £70,000 in the advised and D2C markets respectively and a customer retention rate in excess of 95%.
“After a slightly subdued start to 2023, there was strong momentum in the run up to the tax year end, with £1.2 billion of gross inflows and £0.6 billion of net inflows in March alone as customers and advisers took advantage of annual pension and ISA allowances.
“Our investments business continues to go from strength to strength and delivered £0.5 billion of net inflows in the quarter. Our investment solutions offer advisers and retail investors great choice and clear communication and have delivered strong long-term performance compared to their peer group. Momentum remained strong heading into the new tax year with AUM passing £4 billion in early April.
“We enter the second half of our financial year in a strong position. Our diversified revenue streams and profitable business model support our recent step up in brand investment, whilst also enabling us to continually reinvest in pricing, service and functionality to benefit our customers. Recently announced changes in respect of pensions are further positive news for the platform market, which already benefits from significant long-term structural growth drivers. Our focus remains on continuing to capitalise on the long-term growth opportunity ahead of us in both the advised and D2C markets.”