AJ Bell share price rises as AUA reaches record high thanks to net inflows
AJ Bell’s assets under administration (AUA) hit a new record high in the first quarter of the 2024 financial year as the firm benefited from net inflows and positive market movements.
In a trading update covering the three months to December, the firm that AUA in its platform business had climbed seven per cent in the quarter. This brought it to £76.2bn, a new record for the firm.
The firm saw net inflows in the quarter of £1.3bn, up from £800m in the same period last year while positive market movements added another £4bn to AUA.
Customer numbers climbed by 8,000 in the quarter with boss Michael Summersgill saying this reflected “increased confidence among retail investors compared to a year ago”.
Its shares were up 3.6 per cent.
Its investment management platform meanwhile saw net inflows of £400m, helping assets under management climb to £5.2bn.
“The consistently strong growth of our investment business illustrates the attractiveness of our low-cost, simple products,” Summersgill commented.
He said AJ Bell had got off to “an excellent start” and suggested that 2024 would prove to be an easier year for investment platforms than 2023.
“Some of the macroeconomic headwinds experienced throughout 2023 showed signs of improving in the quarter, driving global equity markets higher and easing some of the pressure on household finances,” he said.
Analysts at Numis agreed that the broader economic environment was improving for AJ Bell. “We expect the cycle to continue to turn this year as real income grows and lower mortgage rates assist improving net inflows,” they said.