AJ Bell Reports Record Assets Under Administration

In a year-end trading update, the company reported record assets under administration (AUA) of £86.5 billion, up 22% from the previous year.

Customer numbers also continued to grow, with an increase of 66,000 to close at 542,000. This represents a 14% growth in the year, which the investment platform said was driven by both advised and direct-to-consumer (D2C) customer acquisition.

AJ Bell’s gross and net inflows across the platform were significantly higher than the prior year, pushed by the company’s continued investment in its brand and propositions alongside improved retail investor confidence compared to the previous year.

AJ Bell said gross inflows in the year were £13.1 billion, up 41% versus the prior year, while net inflows in the year were £6.1 billion, up 45% versus the preceding year.

Furthermore, AJ Bell reported favourable market movements of £9.5 billion, correlating to 13% of opening AUA.

“I am pleased to report on another excellent year in which we have delivered impressive growth in customers and assets under administration,” said Michael Summersgill, Chief Executive Officer at AJ Bell.

“In FY24, we have enhanced our propositions, improved our brand awareness, and lowered the cost of investing for our customers whilst maintaining our industry-leading service levels,” he added. “This has helped to drive our strong performance this year, but more importantly, it provides a strong foundation for our future growth prospects.”

Summersgill also stated that given the increased press coverage ahead of the upcoming Budget, they have seen a noticeable change in both customer contributions to pensions and tax-free cash withdrawals.

“Whilst these behavioural changes do not have a material impact on AJ Bell’s business performance, they represent significant decisions for individual customers,” stated Summersgill.

As a result, the company has made representations to the Treasury calling for a commitment to a pension tax lock in the Budget, which they feel will guarantee stability in key pension tax legislation for at least this parliament.

Furthermore, the company has been actively involved in discussions regarding the simplification of the ISA system and long-term pension tax stability.