AJ Bell assets slide as volatility hits investors
Trading firm AJ Bell said the value of assets on its platform had dipped two per cent in the past year as extreme volatility on the markets dealt a blow to retail investors’ holdings.
In its full year results today, assets under administration dipped two per cent to £64.1bn as adverse market conditions delivered an 11 per cent blow to its customers’ holdings.
The investment platform said it had boosted its customer numbers by 57,687 to 425,652 at the end of September but net inflows had fallen to £5.8bn, down from £7bn last year.
Retail investment platforms scooped up hordes of customers and assets through the pandemic as traders poured onto platforms to take advantage of volatility of the markets. The surge has since slowed however as investors look to shield their cash as the cost of living rises and volatility hits markets.
Pre-tax profits rose six per cent to £58.4m despite the slowdown, as revenues rose 12 per cent to £163.8m.
New chief Michael Summersgill said it had been a “challenging year” for markets but the firm was well placed for growth in the months ahead.
“Looking ahead, whilst market volatility is likely to persist in the short-term, our focus is very much on the long-term,” Summersgill said.
“The structural growth drivers for the UK investment platform market remain strong, and with around two-thirds of our estimated £3 trillion target market still held off platform, we have a significant growth opportunity ahead of us.”
AJ Bell’s investment arm also boosted its assets under management by 27 per in the year to close at £2.8bn, while inflows into the division hit £1.05bn, up from £922m.