Platform assets under administration at AJ Bell rose 21% (year on year) to £108bn as at 31 December, a rise of 5% over the quarter.
The platform business reported a small increase in net inflows to £1.5bn (2024: £1.4bn), despite a rise in redemptions around the Autumn Budget.
The quarter ended 31 December saw record gross inflows of £4.6bn (2024: £3.6bn).
Advised customers of the platform and SIPP provider continued to rise steadily by 6% year on year and 2% over the quarter to pass 185,000 at the end of December.
The adviser platform now holds £64.6bn in assets under administration (30 September: £62.4bn), despite a rise in outflows and net inflows dropping to £0.2bn (quarter to 30 September: £0.3bn).
The increase in advised customers was once again eclipsed by a 26% rise in direct customers (year on year) to 488,000.
Michael Summersgill, CEO at AJ Bell, said the latest quarter’s results were tempered by the impact of the Autumn Budget.
He said: “Record gross inflows were moderated by temporarily elevated outflows, driven largely by uncertainty ahead of the UK Budget. Customers nearing retirement responded to speculation around potential pension tax changes, resulting in a £500 million increase in pension withdrawals compared with Q1 FY25.
“Persistent uncertainty in the lead‑up to the last two Budgets has become an unwelcome feature of the market, prompting higher levels of assets moving out of pensions and risk‑based investments. This is directly at odds with the Government’s stated ambition to boost retail investing. We hope to see a more considered approach to the next fiscal event and urge government to provide a clear commitment to pension tax stability going forward.”
AJ Bell’s investments business AJ Bell Investments had a strong quarter, with assets under management increase 32% year on year to £9.5bn. Net inflows for the quarter remained steady at £0.3bn (2024: £0.4bn).
The quarter saw the completion of the sale of the Platinum SIPP and SSAS business, with assets of £3.3bn and 3,4000 from the non-platform business transferring to InvestAvv Group on 3 November.