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AJ Bell reports record assets despite pre-Budget customer withdrawals

Published 17/10/2024, 08:50
AJ Bell reports record assets despite pre-Budget customer withdrawals

Proactive Investors - AJ Bell (LON:AJBA) shares retreated slightly from recent all-time highs after a positive year-end update, which showed net flows ahead of expectations, with inflows of £1.5 billion in the fourth quarter.

Assets under administration on the pensions and investment platform reached £86.5 billion by the September year-end, up 22% over the year to record levels, with total advised customers rising by 8% to 171,000.

The inflows in the final quarter brought total gross inflows for the year to £13.1 billion, up 41% from £9.3 billion the previous year, with net inflows of £6.1 billion, representing a 45% increase.

AUA also benefited from £9.5 billion in favourable market movements.

Chief Executive Michael Summersgill noted a "noticeable change in both customer contributions to pensions and tax-free cash withdrawals" from the platform ahead of the budget.

However, this was offset by strong inflows from customers seeking to benefit from tax relief before potential tax changes, so there was no significant impact on overall flows.

Summersgill said: "Whilst these behavioural changes do not have a material impact on AJ Bell's business performance, they represent significant decisions for individual customers. We have therefore made representations to the Treasury calling for a commitment to a pension tax lock in the Budget, guaranteeing stability in key pension tax legislation for at least this parliament."

Read more on Proactive Investors UK

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