AJ Bell and Brewin Dolphin have reported double digit growth in their total assets after an explosion of trading activity following the Covid sell-off in March.
AJ Bell reported that assets under administration rose 12% to £54.3bn in the three months to 30 June, higher than the FTSE All Share’s gains of 10%.
Total client numbers rose 8% to 282,619 with the platform group raking in net inflows of £1.2bn.
The firm said its strong customer growth and net inflows over the period were down to organic growth in its platform business, in particular its D2C arm.
In the three months to 30 June the number of trades made on its D2C platform more than doubled compared with the same quarter last year with clients pouring in £800m, up 60% on the previous year’s net flows and “exceeding management’s expectations”.
Net inflows from advised customers of £500m were flat with the previous year.
Though AJ Bell said trading volumes had fallen from the peak levels earlier in the Covid crisis, the firm said it still expects pre-tax profits for the year to be at least £2.5m higher than the current consensus.
Brewin’s assets surge to £46.7bn
A recovery in the markets and organic growth were also responsible for steering Brewin’s total funds 12.8% higher in Q3 from £41.4bn to £46.7bn.
Incoming chief executive Robin Beer said the FTSE 250 wealth manager “has not faltered during the Covid-crisis” with total assets in its discretionary fund business hit £40.6bn from £35.7bn in March.
The firm reported “robust inflows” of £400m which was similar to levels seen in Q2. Year-to-date net flows are at £800m which it said was the result of losing a low margin institutional mandate in the first quarter.
Revenues at the firm were 6.2% higher at £92.7m which it said was due in part to higher commissions from “elevated trading activities” and income from recent acquisitions totalling £5.2m.
AJ Bell sets sights on £1.5trn UK cash savings market
The pair of Q3 trading announcements also contained updates on upcoming projects in the pipeline.
AJ Bell revealed it plans to enter the £1.5trn UK cash savings market with the launch of AJ Bell Cash. The savings hub, which is in the initial stages of testing, will allow customers to apply for multiple fixed-term savings accounts from a range of UK banks and manage them from one account on the AJ Bell Youinvest platform.
“With interest rates so low, it is increasingly important that people regularly check the rates they are earning on their cash savings and consider switching accounts if they want to ensure they get a better return, but most people don’t have the time or inclination to do that,” chief executive Andy Bell (pictured) explained.
“Our new AJ Bell Cash savings hub will enable customers to manage their cash savings more effectively without having to go through lengthy, paper-based application processes each time they open a new account, whilst ensuring they benefit from FSCS protection.”
Elsewhere Brewin announced its new client management system is ready to go live next week.
The system is designed to improve the client experience from onboarding to suitability and provide “greater operational efficiencies” for Brewin staffers.
Brewin employees had received “comprehensive training” during the lockdown period to use the system and had recently completed a series of “dress rehearsals” to ensure a smooth transition.
However it said the launch of its custody and settlement interface had been pushed back until the first half of 2021 due to delays caused by remote working.
