AJ Bell assets fall in first post-IPO market update
AJ Bell today revealed that assets fell in the months leading up to its blockbuster December float.
Read more: AJ Bell prepares for London IPO
Underlying platform inflows grew 20 per cent to £1.2bn in the three months to the end of December compared to the same period in 2017, AJ Bell said today in a trading update.
AJ Bell also added 7,285 customers to total 190,498 over the quarter, it said.
However, the broker blamed negative market movements of £2.7bn for a four per cent quarterly decline in assets under management, leaving them at £44.2bn.
But AJ Bell pointed out that this was less steep than the FTSE All-Share average fall of 11 per cent over the same period.
The broker and online trader made its London Stock Market debut to hit a market cap of £651m, but that has since almost doubled to £1.16bn with a share price of 285p.
But today shares dipped before flattening out to stand 0.1 per cent down at 284.8p in early morning trading.
Chief executive Andy Bell said the firm remains on track to hit its financial goals, adding that it attracted customers despite “volatile” investment markets.
“[This] demonstrates the strength and resilience of our business model as we approach our busiest period of the year,” he said.
However, he warned that defined benefit pension transfers will continue to fall, affecting platforms like AJ Bell.
“Platforms have been one of the main beneficiaries of defined benefit pension transfers. These have declined steadily since their peak seen in financial year 2017 and we expect this decline to continue,” he warned.
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“Despite this and short-term market volatility, the outlook for the platform market remains strong. The FCA is due to deliver the final report of its Investment Platforms Market Study and based on its interim report this is expected to focus on value for money and easier transfers between platforms.
“Our competitive pricing model and service proposition means we are well positioned to benefit from anticipated developments in these areas.”