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DB transfers bring £200m of inflows to AJ Bell

DB transfers bring £200m of inflows to AJ Bell

Defined benefit pension transfers contributed £200m of the £900m net inflows onto the AJ Bell platform in the three months to the end of December 2019.

The new cash means the company had assets under administration of £54.7bn at the end of last year - a 27 per cent increase over the course of 2019 - and a total of 241,000 customers.

The £200m of net inflows from DB transfers was one third less than the same period in 2018, and the latest sign the contribution of those inflows to platforms was declining. 

In the 12 months to the end of September 2019, the company had inflows of £900m from such transfers, half the previous year’s level.

Addressing the latest results, the company's chief executive and founder, Andy Bell, said his focus would continue to be on making the platform the “easiest to use.”

Mr Bell said: "Whilst Brexit is by no means resolved, a majority government does at least provide some clearer direction which many investors will appreciate as they consider making the most of their Isa and pension allowances before the end of the tax year."

During the last three months of 2019, AJ Bell's advised platform saw £600m of net inflows while its direct-to-consumer platform saw net inflows of £300m. This was boosted by positive market movements of £1.4bn.

AJ Bell's advised platform saw its assets under administration grow from £33.8bn to £35.2bn over the last three months of 2019.

The AJ Bell share price has risen from £2.87 to £3.98 over the past year. 

Mr Bell sold 5.5m shares in the company in December 2019, when the share price was £4.20, bagging £23.1m.

He said this share sale was to provide extra liquidity.  

david.thorpe@ft.com

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