AJ Bell has reported record assets under administration (AUA) of £126bn, a 22% year-on-year increase, following a surge in new customers across its divisions. The Salford-based investment platform's end-of-year trading update also showed assets under management (AUM) reached a record £12.1bn, up from £8.9bn.
Customer numbers surge 24%
Total customer numbers rose 24% to 796,000, according to City AM. Net inflows climbed 37% from £7.1bn to £9.7bn, while gross inflows leapt to £21.5bn. The group attributed this growth to the significant influx of new customers.
Both business segments posted gains, with total advised customers climbing by 12,000 throughout the year to reach 194,000. The investment platform's channel achieved record gross inflows of £8.7bn, while total direct to consumer (D2C) clients jumped 30% to 602,000 from 140,000, generating inflows of £7.8bn.
CEO cites low-cost platform appeal
Michael Summersgill, chief executive officer at AJ Bell, said the influx of new customers reflected the "strong appeal of our low-cost, trusted platform". The investment solutions channel continued to attract "strong flows" across both the advised and D2C business, reaching record inflows of £1.9bn, attributed to clients actively seeking out "low-cost investment solutions".
The FTSE 250 firm also pressed ahead with its strategy to simplify operations by winding down its 'non-platform' activities. The closure of its remaining third-party SIPP arrangement, through which AJ Bell managed pension administration on behalf of other companies, is anticipated to be finalised during the first quarter of 2027. The group expects clients who used this service to transfer to its D2C platform.
Growth strategy shows results
"At the start of the year, we outlined our intention to accelerate growth through increased investment in brand, marketing and platform propositions," said Mr Summersgill. "Record growth during the year provides clear evidence of the success of that approach, as we continued to attract...long-term investors with significant potential to grow their assets over time."
