Retail investment platform AJ Bell said its customers’ assets had dipped two per cent in the past year as volatility on the markets offset a surge in investors pouring onto its platform.
In a year end trading update today, the firm said its assets under administration had fallen to £64.1bn cent on the previous year despite customer numbers increasing by 57,687 to close at 425,652 – a jump of 16 per cent on 2021.
The surge in numbers had been dampened by a slump of 11 per cent in investment performance as inflation and the knock on effect of war in Ukraine have shaken markets.
Net cash flowing into its funds also tumbled despite the rise in customers, as investors fled volatility and pulled cash from the markets. Bosses said the firm had notched £5.8bn of inflows through the year, down from £7bn last year.
AJ Bell’s new chief Michael Summersgill said the rise in customers however showed the strength of the firm against volatility.
“Despite the challenging economic backdrop, our business model continues to perform exceptionally well,” he said in a statement.
“We have a talented and experienced management team in place that is focused on achieving our growth ambitions in the investment platform market. Together we are extremely excited about the long-term prospects for AJ Bell.”
The firm’s investment management division AJ Bell Investments reported a jump in assets under management of 27 per cent in the year to close at £2.8bn, up from £2.2bn last year.