23rd Jan 2019 09:24
LONDON (Alliance News) - AJ Bell on Wednesday reported a drop in first quarter assets but it remains on track to meet targets laid out before its December initial public offering.
In the three months to December 31 the stockbroker's closing assets under management stood at GBP44.2 billion compared to GBP46.1 billion at the start of the quarter, a 4.1% decrease.
Negative market movements contributed to a GBP2.7 billion drop in assets but AJ Bell noted its 4.1% drop is lower than the 11% shed by the FTSE All-Share index in the period.
AJ Bell's net flows in the period were flat on the year before at GBP800 million. The stockbroker's flows were boosted by GBP1.1 billion net inflows from its investment platform.
The company's investment platform - which accounts for GBP37.3 billion in assets under management - reported a 4.0% increase in customers to 190,498.
"Trading in the first quarter of our financial year continued in line with the growth story we outlined ahead of our IPO and remains on track. We continued to attract new customers and inflows to the platform in the face of volatile investment markets, which demonstrates the strength and resilience of our business model as we approach our busiest period of the year," said Chief Executive Andy Bell.
Bell continued: "The Financial Conduct Authority 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."
Shares in AJ Bell were up 1.0% Wednesday at 287.70 pence each.
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