Home Estate Planning ‘Strong momentum’ continues at investment platform AJ Bell as inflows jump

‘Strong momentum’ continues at investment platform AJ Bell as inflows jump

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AJ Bell reported strong inflows and a boost in customer numbers as investors flocked to the firm to cash in on the ongoing rally in equities.

Net inflows in its platform business amounted to £1.7bn in the three months to June, up from £1.1bn in the same period last year. AJ Bell said this reflected a “continuation of the strong momentum reported in the previous quarter”.

Combined with favourable market movements, this helped push assets under administration (AuA) up four per cent in the quarter to £83.7bn. Looking over the past year, AuA has increased by 20 per cent.

The firm also reported that it had increased its customer numbers, which rose by 25,000 in the quarter – around five per cent. There was particularly strong growth among D2C customers, which rose seven per cent in the quarter.

Recent stock market performance has boosted confidence amongst D2C customers, resulting in higher levels of dealing activity in recent months, with international dealing activity being particularly strong,” Michael Summersgill, AJ Bell’s chief executive said.

AJ Bell’s investment platform meanwhile also reported a strong performance, with assets under management (AUM) climbing nine per cent in the quarter thanks to net inflows totalling £400m.

Analysts at Shore Capital said AJ Bell had produced “another better-than-expected update” with “impressive” growth in the D2C segment.

Summersgill also said the firm was “actively engaging” with the new government on its pledge to boost retail investment through simplification of the ISA system.

“Having long campaigned for simplification of the ISA system, we have this week put forward proposals to the new Treasury team in which we call for a move to a single ISA wrapper for cash and investments, making it easier for savers to start investing,” he said.

There are currently around three million people in the UK with £20,000 or more invested in Cash ISAs despite investing no money in Stocks and Shares ISAs, according to data from HMRC.

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