Investment platform AJ Bell’s CEO Michael Summersgill (pictured) remains positive for the platform market despite “unhelpful uncertainty” around chancellor Rachel Reeves’ upcoming Budget.
In a year-end trading update for FY24, Summersgill said the firm has witnessed a noticeable change to both customer contributions to pensions and tax-free withdrawals.
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“While these behavioural changes do not have a material impact on AJ Bell’s business performance, they represent significant decisions for individual customers. We have therefore made representations to the Treasury calling for a commitment to a pension tax lock in the Budget, guaranteeing stability in key pension tax legislation for at least this parliament.”
“While the upcoming Budget has introduced unhelpful uncertainty, we remain positive about the outlook for AJ Bell and the platform market more broadly,” he added.
Assets continue to rise
The platform’s investments arm saw assets under management rise 45% in FY24, hitting £6.8bn.
AJ Bell Investments also saw £1.5bn net inflows into its advised and D2C offerings, slightly down on the £1.6bn recorded in 2023.
The firm recently appointed Ryan Hughes as managing director of AJ Bell Investments, who had served as interim managing director since late 2023.
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The business as a whole hit a record assets under administration of £86.5bn, up 22% over the period. AUA was bolstered by favourable market movements of £9.5bn.
Gross inflows were up 41% on 2023, hitting £13.1bn, while the platform also recorded £6.1bn net inflows.
Meanwhile, platform customer numbers increased by 14% to close at 542,000.
Summersgill added that the firm is continuing its campaign to lobby for the simplification of the ISA system and long-term pension tax stability.
This story was written by our sister title, Portfolio Adviser
