AJ Bell: DIY investment platform’s business booms

AJ Bell saw assets under administration jump to £89.5bn by the end of 2024, as customers on the do-it-yourself investment platform surged eight per cent throughout the year.

The trading platform’s assets under administration jumped 17 per cent throughout last year, and three per cent in the last quarter, it said in a trading update today.

With close to 561,000 customers, growth came primarily from its direct-to-consumer platform, with the number of users increasing four per cent in the last quarter of the year.

Advised customers grew at a much slower rate, increasing two per cent through the quarter to 174,000.

“During the quarter we continued to see the benefits of our dual-channel model and the high-quality propositions that we offer to both the advised and D2C market segments,” AJ Bell chief Michael Summersgill said.

Net inflows into both its platform and investments business continued strong during the last quarter, at £1.4bn and £400m respectively.

The direct-to-consumer part of AJ Bell’s platform performed particularly well, with net inflows of £1.1bn, a 57 per cent increase from the last quarter of 2023.

“Ahead of the October Budget, speculation around the tax treatment of pensions caused a short-term behavioural change among retail investors, which normalised quickly once the content of the Budget became known,” added Summersgill.

“The strong start to the year positions us well as we approach the busy tax year end period. We remain focused on the significant long-term growth opportunity that exists in the platform market. Our dual-channel approach and continued investments into our propositions and brand mean we are well-placed to continue our strong growth.”

Last month, AJ Bell was upgraded from Hold to Buy by Shore Capital, with analyst Vivek Raja citing its share price weakness and the long-term imperative for individuals to save for retirement.

The firm’s stock price is up 42 per cent over the last year, but has flatlined since the summer.