AJ Bell customers and AUM climb in Q3

investmentweek.co.uk:

Michael Summersgill (pictured) is the CEO of AJ Bell.

In its latest quarterly trading update, the company reported an rise in AUM in its investment business, hitting £4.3bn in total. This put the overall AUM increase for the year up by 72% as the firm saw net inflows in the quarter of £400m, up 33% on the prior year. 

AJ Bell's platform reached a record £69.8bn in assets under administration and added 10,606 new customers in the period, an increase of 2% for the quarter and 12% new customer growth in the past 12 months.

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The platform business attracted £1.1bn in net inflows in the quarter, down from £1.6bn in the same period in 2022. Gross inflows were £2.4bn, down from £2.6bn last year.

The latest update follows its positive half year results to 31 March 2023, when the company reported profits before tax rising 61% to £41.9m, compared with £26.1m over the same period last year.

Michael Summersgill, chief executive officer at AJ Bell, said the continued growth «once again demonstrate the strength of our dual-channel platform mode».

AJ Bell half-year profits jump 61% to £42m

He said: «In a market where many asset managers are suffering persistent net outflows, the strong performance and low-cost nature of our multi-asset investment solutions continues to attract new assets in both the advised and D2C markets.»

Looking ahead, the CEO said the firm was «well prepared» for the upcoming Consumer Duty regulations coming into force at the end of this month, changes Summersgill said would be «positive for consumers, with an increased focus on value for money and ensuring good customer outcomes set to improve standards within the market».

Oberon