Investment firm defies dramatic market conditions with strong performance

Manchester-based investment platform AJ Bell has reported a strong performance in testing market conditions.

In a trading update this morning for the quarter ending March 31, it revealed that total customer numbers increased to 262,179, up 22% over the past 12 months and nine per cent in the quarter, with total net inflows up 30% compared with prior the year at £1.3bn (2019: £1bn).

Total assets under administration (AUA) increased by one per cent over the past year, closing at £48.3bn.

AUA fell by 12% in the quarter due to the adverse market and other movements. By comparison, the FTSE All-share was down 26% over the same period.

AJ Bell’s customer growth and strong net inflows during the quarter were driven by the platform business, where platform customer numbers increased organically by 20,872, a record quarter for AJ Bell.

Total platform customers closed at 248,074, up 23% year-on-year and nine per cent in the quarter.

Advised customers of 103,974, were up 11% over the last year and four per cent in the quarter. D2C customers of 144,100, were up 34% over the last year and 13% in the quarter.

Platform underlying net inflows, representing organic growth in the quarter, increased by 75% over the prior year to £1.4bn (2019: £0.8bn).

Underlying net inflows of £0.7bn on each of the Advised and D2C platforms compared with £0.4bn on both Advised and D2C platforms during 2019.

Platform AUA closed at £42bn, up three per cent over the past year and down 11% in the quarter

Chief executive Andy Bell said: “This quarter was, without doubt, one of the most dramatic we’ve witnessed.

“We had to move quickly to keep our people safe from COVID-19 and comply with the Government lockdown.

“I’m pleased that we were able to do that effectively whilst remaining open for business as usual during a very busy tax year end period.

“I’d like to thank our staff for the flexibility and dedication they have shown to ensure our customers have been able to access and manage their investments as usual during the lockdown.”

He added: “This resilience is reflected in our new business figures which are very strong compared to last year.

“Our platform delivered encouraging organic growth in both customers and net inflows as we continued to support advisers and customers throughout this unprecedented situation.

“The COVID-19 crisis continues to have a devastating impact on people’s lives and the economic outlook remains uncertain.

“We have confirmed that we are not furloughing any staff or claiming benefits from any of the Government’s financial support schemes which should be preserved for those companies that need them most.

“We have also launched the AJ Bell Wage War on COVID Fund under the umbrella of the AJ Bell Trust, a UK-registered charity, which will benefit charities and causes supporting the COVID-19 efforts.

“In addition to a £50,000 donation from the AJ Bell Trust, I will be donating my April, May and June wages into the fund and other board directors, senior management and staff have made similar pledges.”