Salford-based investment platform giant AJ Bell has reported record platform assets under administration (AUA) of £103.3 billion for the year to September 30, up 19% in the year.
However, AJ Bell said in a trading update for the year that record inflows of £7 billion into its advised platform were offset by outflows of £5.3 billion.
AJ Bell CEO Michael Summersgill warned that “uncertainty around government policy continues to cause disruption.” He said speculation over pension taxation ahead of the November Budget “creates damaging uncertainty for customers and advisers.”
Customer numbers increased by 102,000 to close at 644,000, up 19% in the year.
In the AJ Bell Investments business, assets under management reached a record £8.9 billion, up 31% in the year.
CEO Summersgill said: “I am delighted to report a year of record growth, surpassing £100 billion in platform AUA and attracting over 100,000 new customers to our low-cost, easy-to-use platform propositions, supported by market-leading customer service.
“This excellent growth marks a significant milestone for the business and reflects the continued success of our dual-channel model, enhancing our growth opportunity within the platform market.
“Our highly scalable business model enables us to drive operational gearing and continually reinvest the benefits of scale in our propositions, pricing and brand to support our long-term growth ambitions. Given the substantial market opportunity, we accelerated investment during the second half of the year. This was accompanied by a favourable market environment, which has supported revenue growth.
“The benefits of our investments are evidenced by record levels of platform customer growth and net inflows. Our D2C platform maintained its strong momentum to report its best year to date, and our Advised platform delivered robust growth, with record gross inflows offset by heightened outflows, driven by elevated pension lump sum withdrawals and adviser consolidation.
“Although the Government has committed to boosting retail investing and positive progress is being made on targeted support measures to help more people invest, uncertainty around government policy continues to cause disruption.
“Speculation over pension taxation ahead of the November Budget, which has developed in the absence of a clear and lasting government commitment to pension tax stability, creates damaging uncertainty for customers and advisers.
“The business continues to campaign for a government commitment to stability on pension tax incentives, allowing customers to plan with greater certainty.
“The platform market opportunity is significant and the structural drivers of growth remain strong. Our dual-channel strategy, underpinned by ongoing investment in our brand and propositions, positions us well to deliver on this opportunity. We look forward to announcing the annual results for what has been another successful year for AJ Bell.”