AJ Bell shares on the up as assets under management exceed £ 70bn

AJ Bell shares rise as the group increases the value of assets held on its wealth management platforms over $ 70 billion

  • The shares of the FTSE-250 listed AJ Bell are up over 3% today
  • Group added over 21,000 new customers to their books in the last quarter

Investment platform AJ Bell has determined that the value of assets held on its wealth management platforms has exceeded the £ 70 billion mark for the first time.

Vying for custom customers with companies like Hargreaves Lansdown and Interactive Investor, AJ Bell also saw user numbers increase by 21,023 last quarter, for a total of 353,299 customers, an annual increase of 30 percent.

Shares in the FTSE 250-listed AJ Bell are currently up 3.1 percent, or 12.60 pence, to 420.60 pence. A year ago, the company’s share price hovered around the 433 pence mark, meaning it’s down around 2 percent over the past year.

Responsible: AJ Glockenboss Andy Bell

With interest rates bottoming out, many money savers have turned to investing in the last year or so in hopes of better returns.

AJ Bell CEO Andy Bell said he was delighted that assets under management had surged to over £ 70 billion.

He said, ‘We are seeing the majority of new customers investing through tax efficient ISAs and annuities while they take control of their financial futures.

‘In the advised market, platform inflows increased by 57% in the third quarter compared to the previous year.

‘The introduction of simplified pension options is particularly popular with advisors, as it offers different price ranges and flexible investment options

“Looking ahead, the structural growth drivers for our sector remain strong and we are well positioned to continue growing across our platform.”

AJ Bell’s net inflows were £ 1.8 billion for the quarter, down from £ 1.2 billion a year ago.

Lockdown surge: Many people have tried investing in the midst of the rock bottom interest rates

The group’s pre-tax profit rose 39 percent to £ 31.6 million for the six months ended March.

Retail investors rallied in the stock market as the lockdowns helped some households save money and gave them more time to experiment with investing.

The average age of private investors using AJ bell’s direct-to-consumer service was 38 years in the first half of the year, five years younger than the average for the broader customer base.

In the six months ended March 31, AJ Bell’s revenue from transaction fees, comprised of trading fees and activity fees for retirement plans, rose 45 percent to £ 11.5 million.

This surge in transaction fee income was driven by higher levels of client trading, particularly towards the end of the period when market volatility set in and investor trading picked up, the group said in May.


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