- Platform sees ‘elevated’ pension contributions ahead of the Autumn Budget
AJ Bell investment platform customer numbers hit a record high last year as pre-Autumn Budget jitters helped boost assets under management.
The group said customer numbers hit 560,000 by the end of December, representing a 16 per cent increase in the last year, as managed assets soared 17 per cent to £89.5billion.
‘Elevated’ pension contributions in the run up to the October Budget helped boost the firm’s bottom line, it said.
Assets ticked up 6 per cent over the fourth quarter, while net inflows remained steady at £400million. This meant the group’s total assets under management surpassed £7billion for the first time.
Net inflows over the quarter reached £1.4billion, representing a £100million increase compared to the firm’s first quarter last year.
Gross inflows stood at £3.6billion, however, which is a £900million increase compared to the first quarter of 2023.
Record high: AJ Bell saw the number of customers using its investment platform reach a record high of 560,000 by the end of December
Advised customer numbers increased by 8 per cent and 2 per cent over the year and quarter, respectively, to 174,000, while direct to consumer customers reached 387,000.
This represented a 20 per cent increase over the year and a 2 per cent rise for the quarter.
Michael Summersgill, chief executive of AJ Bell, said: ‘Ahead of the October Budget, speculation around the tax treatment of pensions caused a short-term behavioural change among retail investors, which normalised quickly once the content of the Budget became known.
‘We believe that pension savers deserve more clarity when it comes to the tax treatment of their long-term retirement plans.
‘As such, we continue to call for Government to commit to stability through a Pension Tax Lock, providing additional clarity around key features of the pension tax system.
‘The strong start to the year positions us well as we approach the busy tax year end period.
‘We remain focused on the significant long-term growth opportunity that exists in the platform market.
‘Our dual-channel approach and continued investments into our propositions and brand mean we are well-placed to continue our strong growth.’
AJ Bell shares fell 1.67 per cent or 7.50p to 440.50p on Wednesday, having risen over 40 per cent in the last year.
Earlier this month the chief executives of AJ Bell, Quilter, Hargreaves Lansdown and Interactive Investor signed a letter to Rachel Reeves opposing the way the government plans to introduce inheritance tax to pensions.
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