In a buying and selling assertion overlaying the ultimate quarter of 2023 revealed at present (18 January), the agency mentioned its platform enterprise recorded internet inflows of £1.3bn, up from about £800m final 12 months.
This contributed to a big rise in property below administration – 15% over the past 12 months and seven% within the quarter – to a file £76.2bn.
AJ Bell stories ‘robust’ outcomes with 50% soar in pre-tax income
The platform additionally noticed a rise in buyer numbers by 8,000 to 484,000 – up 12% over the 12 months and a couple of% within the quarter, comprising 323,000 D2C clients – a 13% annual and a couple of% quarterly improve – and 161,000 suggested clients, marking an 8% and 1% rise for the 12 months and quarter, respectively.
AJ Bell’s funding enterprise additionally loved a constructive quarter, with AUM hitting £5.2bn. This was greater than double (52%) than final 12 months and an 11% rise within the quarter. Web inflows within the funding division, nonetheless, remained at round £400m, the identical stage as final 12 months.
Ryan Hughes, interim investments managing director at AJ Bell, mentioned hitting the £5bn milestone for the funding enterprise was a “unbelievable achievement” since launching the enterprise in 2016.
“I’m significantly proud we’ve been in a position to drive down the price of our funding options as our property have grown, passing the good thing about that cut back to clients,” he added. “That’s one thing we’re dedicated to doing as we proceed to develop, delivering distinctive worth for our clients.”
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AJ Bell chief govt Michael Summersgill mentioned the web inflows attracted through the quarter had been greater than in any particular person quarter of the monetary 12 months to 30 September 2023, supported by beneficial market actions, particularly in direction of the tip of the 12 months.
“We proceed to put money into enhancing our propositions, with a powerful concentrate on ease of use, while additionally investing in our pricing to make sure we proceed to ship nice worth to clients,” he added.
“Following the FCA’s latest clarification of its expectations regarding curiosity paid on money balances held on funding platforms, we introduced modifications to the rates of interest paid on money balances while additionally reducing quite a lot of our costs.
These modifications will profit the agency’s clients to the tune of £14m a 12 months, he famous, reflecting AJ Bell’s “longstanding philosophy” of sharing its economies of scale because it grows, an strategy he mentioned is “very a lot aligned with the Shopper Obligation”.
Summersgill additionally recommended the agency’s dual-model for “proving its resilience” within the final 18 months throughout an setting of excessive inflation.