(Alliance News) - AJ Bell PLC said Thursday its assets took a hit in the third quarter, with market movements shedding more than GBP5 billion, but was able to attract over 14,000 new customers in the period.
AJ Bell's total assets under administration ended the third quarter at GBP68.7 billion, falling 7.3% from GBP74.1 billion at the start of the quarter, and down 2.4% from GBP70.4 billion at the same point the year prior.
In the three months to June 30, the Manchester-based stockbroker recorded GBP100 million in total net outflows and suffered a GBP5.3 billion loss from market movements. AJ Bell pinned this on "weaker investor sentiment", pointing to the FTSE All-Share Index falling by 6% and the MSCI World Index sliding 9% during the quarter.
Platform AuA ended the quarter at GBP63.5 billion, down 5.1% from GBP66.9 billion at March 31 but up slightly on GBP63.1 billion from a year ago.
Turning to its Investment platform, assets under management stood at GBP2.5 billion, rising 25% from GBP2.0 billion a year ago. Over the quarter, the increase was 8.7% from GBP2.3 billion.
AJ Bell said its Platform customer numbers increased 3.5% to 417,503 from 403,383 at the start of the quarter, and were up 18% from 353,299 on the year before.
"Our trusted, dual-channel investment platform has continued to attract thousands of new customers looking to invest for their future, despite a weakening in investor sentiment over the last six months," said Co-Founder and outgoing Chief Executive Officer Andy Bell.
Last Thursday, AJ Bell PLC said it promoted Deputy Chief Executive Officer Michael Summersgill to CEO, to replace Bell who stepped down from the helm of the investment platform. Summersgill, who is also chief financial officer, will replace Bell as CEO with effect on October 1, while Bell will transition to non-executive deputy chair on the same date.
"Overall, our business continues to perform well and our long-term growth prospects remain strong. The continued development of our customer propositions, together with our highly competitive pricing and strong customer service, means we are well positioned to continue growing the business and increasing our market share," Bell said on Thursday.
AJ Bell shares were 2.8% higher at 295.40 pence each in London on Thursday mid-morning.
By Tom Budszus; tombudszus@alliancenews.com
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AJ Bell (AJB)