It was déjà vu for AJ Bell which reported net inflows of £1.5bn for its second quarter ending 31 March 2022, a repeat performance of the same three-month period last year and an improvement against the £1.3bn in the previous quarter.
Total assets under administration closed the quarter at £74.1bn, a rise of 14% compared with March 2021 but a drop of 2% from the end of December.
AJ Bell said: “The comparative quarter last year was exceptionally strong as consumers invested excess cash savings built up during Covid lockdowns, whereas this year they have been faced with increased market uncertainty caused by factors including inflationary pressure on the cost of living and the war in Ukraine.”
The platform business, which includes advised and D2C customers, recorded net inflows for the quarter of £1.6bn, while AJ Bell Investments achieved net inflows of £223m. This was offset slightly by non-platform outflows of £0.1bn.
AJ Bell had 418,309 customers at the end of March – up 21% from last year and a 5% increase from the previous quarter- as it pursues its ambition to be a bigger player in the D2C space. Customer retention was 95%.
See also: AJ Bell trims and simplifies fund charges
Simplified platform for the advised market
Chief executive Andy Bell (pictured) said: “Although our D2C customers invested slightly less via our platform than in the comparative period as they assess the impact of the rising cost of living, net inflows to our advised platform remained on par with last year, which was a strong comparative. Net platform inflows of £1.6bn is an encouraging result given the uncertain market backdrop.”
He added: “This week we launched a new investing app called Dodl by AJ Bell which expands our offering to DIY investors. It offers all the main tax wrappers and a simplified investment range to help people select funds and shares for their portfolio. With an annual charge of just 0.15% and no commission for buying or selling investments, Dodl is a low-cost proposition perfectly suited to individuals who want an easy way to invest for their future. We believe it will be particularly attractive to the 8.6 million adults in the UK who hold more than £10,000 of investible assets in cash, especially in the current climate of rising inflation where cash savings are being eroded in real terms due to the low interest rates available.
“The launch of Dodl in the consumer market will be complemented by the launch of Touch by AJ Bell, our simplified platform currently being developed for the advised market. These developments will broaden our reach in both the advised and D2C segments, keeping us at the forefront of the platform market and positioning us well to continue gaining market share.”
