Q1 Trading Update

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

AJ Bell Investments

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 £0.8 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 £443 million in the quarter, more than double the level achieved in the comparative quarter last year. Total assets under management passed through the £3 billion milestone in the quarter, closing 62% higher than a year ago at £3.4 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."

^{(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  

Historical customer numbers, AUA and AUM by quarter

^{(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.