Press Releases

Ambiguity around the level of the Money Purchase Annual Allowance (MPAA) means HMRC should make the rules regarding refunding pension contributions more flexible, according to AJ Bell.

As voters prepare to head to the polls, Tom Selby, senior analyst at AJ Bell looks at the key Conservative and Labour manifesto pledges on personal finance issues, as well as the major policy initiatives that went unmentioned.

New business inflows at AJ Bell grew 68% to £3.6bn during the first six months of its financial year (1 Oct 2016 – 31 March 2017) up from £2.1bn in the prior year.

AJ Bell has launched an online Due Diligence Hub that outlines the key areas advisers should focus on when selecting the right investment platform for their clients’ needs.

A firm reading from the America’s small business sentiment index and a 1.1% month-on-month increase in new openings both suggest that the US economy remains on track – and strong enough to withstand further interest rate increases from the Federal Reserve.

Stock markets are bubbling up again, with America’s NASDAQ, the UK’s FTSE 250 and Germany’s DAX all setting new record highs this week. Hopes for some details this week on President Trump’s long-awaited tax cuts are one reason why.

The most startling market reaction to Theresa May’s decision to call a General Election is sterling’s rally to around $1.28 and movements in the currency markets may well shape short-term market movements in the run-up to 8 June.

AJ Bell has launched a new capital gains tax (CGT) tool to help advisers monitor and manage clients’ CGT liabilities.

The Fundsmith Equity fund was the most purchased fund via the AJ Bell Youinvest platform during Q1 2017 but the new Woodford Income Focus fund entered the top ten at number two, despite the offer period only opening on 20 March 2017.

“The FTSE 100 is trading only marginally below its March all-time high of 7,430 and volatility is still very subdued,” comments Russ Mould, investment director at AJ Bell.

AJ Bell has launched a 72 strong Favourite Funds list and an online filtering tool to help DIY investors find the right funds for their portfolio.

AJ Bell is calling for the Government to allow adviser charging to be facilitated via Lifetime ISAs as new research suggests this would encourage take up of the product amongst advised clients.

There is only one week to go until the end of the tax year but it is not too late for investors to make use of six variations of pensions and ISAs that could net them almost £10,000 from the Government.

It is two months since Tesco and Booker announced their merger and the combination of a subsequent 9% slide in Tesco shares (taking them back to where they started before the deal became public) and opposition from two key shareholders is raising the question of whether the transaction is a good one for shareholders or not.

With tax year end just around with corner, Tom Selby, senior analyst at AJ Bell, looks at some tips that people might be less familiar with.

We've analysed the top selling investments via AJ Bell Youinvest (www.youinvest.co.uk)

For all of the noise generated by the FTSE 100’s record-breaking run that began 2017, the UK’s headline index is up by just 1.6% so far this year amid remarkably placid trading and while such a sleepy start to the year has many market-watchers on edge, history suggests it is normally a good rather than bad sign.

With one week to go until the Chancellor’s final spring Budget statement, Tom Selby, senior analyst at AJ Bell, considers six personal finance issues to keep an eye out for.

View AJ Bell's response to the HM Treasury consultation on reducing the money purchase annual allowance (MPAA), which closed on 15 February 2017.

Unsuspecting savers that have taken advantage of the pension freedoms risk being hit by surprise tax bills under reforms set to be introduced by the Government in April

Millions of potential first time buyers will be considering taking out a Lifetime ISA (LISA) to build a deposit for their first home when it launches in less than two months’ time.

Over £20bn of pension money locked in expensive, outdated products could be set free when a 1% cap on early exit penalties comes into force in April, new analysis suggests.

New analysis shows the US Federal Reserve needs to tread very carefully when implementing the next interest rate hike if it wants to avoid unsettling a buoyant stock market.

“It may not be a household name but the Philadelphia Semiconductor Index (known as the SOX) exerts a strong pull on stock markets around the world,” comments Russ Mould, investment director at AJ Bell.

Reporting season continues at pace, so below are some of the key points to keep an eye out for in the trading updates from Paddy Power Betfair, Unilever and Sky, from Russ Mould, investment director at AJ Bell.

Savers are set to flock to the new Lifetime ISA, new research suggests, but a significant number remain blind to the risk of an exit charge slashing the value of their fund by thousands of pounds.

“Yet another profit warning from Pearson is hammering the share price today, down by more than a fifth at the opening, as the education publisher reveals more problems in the USA and admits it will have to cut its dividend in 2017,” says Russ Mould, investment director at AJ Bell.

“Markets need to be careful what they wish for if they see Trump as the new Ronald Reagan, at least in 2017,” explains Russ Mould, investment director at AJ Bell.

The £36m supplementary levy from the Financial Services Compensation Scheme (FSCS) to fund SIPP related claims this year highlights the urgent need for a Permitted Investments list to be re-instated in the SIPP market.

The FTSE 100 ended last week above the 7,300 mark for the first time, having set a record 14 straight daily gains and 12 new all-time highs.

Tomorrow we will see whether the weak pound continued to stoke UK inflation during December and later in the week we get the latest decision on interest rates from the European Central Bank. Russ Mould, investment director at AJ Bell, looks at some of the key points to keep an eye out for.

The current regime for comparing pension and investment product charges is not fit for purpose and must be radically simplified, platform provider AJ Bell says.

AJ Bell saw record trading volumes on its www.youinvest.co.uk platform during 2016, with the number of trades carried out since the EU referendum in June being 55% higher than the same period in 2015.

AJ Bell’s latest Dividend Dashboard report shows that dividends paid by firms in the FTSE 100 are forecast to increase to £78.4 billion in 2017, but that dividend cover still looks worryingly thin at 1.46.

Russ Mould, investment director at AJ Bell, comments on the Fed’s decision to raise US interest rates.

As an eventful 2016 draws to a close, AJ Bell’s experts outline what they believe will be some of the key talking points of 2017 in the worlds of platforms, pensions and investments.

This week we have a number of important economic indicators both here and in the US. Russ Mould, investment director at AJ Bell, looks at some of the key points to keep an eye out for.

The Government’s proposed ban on pensions cold-calling will deter scammers but must be just the start of a concerted effort to drive fraudsters out of the market, AJ Bell says.

“OPEC’s first production cut in eight years, talk of non-OPEC members also applying some output discipline and a second consecutive drop in US weekly oil inventories are taking oil above $50 a barrel,” says Russ Mould, investment director at AJ Bell.

We are delighted by the Government’s recent decision to protect savers by banning pensions cold-calling as part of a wider crackdown on retirement scams.

Andy Bell and AJ Bell's experts comment on the Autumn Statement.

With one week to go until Chancellor Philip Hammond’s first Autumn Statement, AJ Bell’s experts consider the major announcements savers and investors should look out for next Wednesday:

The Government’s public sector annual pensions costs could rocket by hundreds of millions of pounds if it switches to the Office for National Statistics’ preferred inflation measure, AJ Bell analysis shows.

Trading activity is three times higher than normal at investment platform AJ Bell Youinvest this morning as retail investors react to the shock victory of Donald Trump in the US presidential election.

Stockmarkets have traditionally reacted badly when a Republican replaces a Democrat as president with an average fall in the Dow Jones of 8.8% in the first year of office (see table 1 below). However, Donald Trump is not likely to be a traditional president and there could be a number of UK based firms and funds that stand to benefit over the longer term in the infrastructure, defence and pharmaceuticals sectors.

The FBI’s decision not to investigate Hillary Clinton is reviving claims from Donald Trump that the election is fixed and raises the prospect of him contesting the result, something he hinted at in the TV debates. If the US election does go to the courts, dollars, real ‘stuff’ and bonds may be worthy bolt-holes for investors based on past experience.

AJ Bell has partnered with youth charity Snow-Camp to host the ‘AJ Bell Alpine Challenge’ – a unique two-day charity snowsports event taking place between 19 and 22 January 2017 in Morzine, France. Novia Financial has already taken up the challenge in this endurance ski contest.

The Government and the regulator should use rules introduced in the mortgage market as the blueprint for banning pensions cold-calling, AJ Bell says.

The outcome of the US presidential election next week is likely to have an impact on stock markets both in the UK and the US. Russ Mould, investment director at AJ Bell, takes a look at the potential impact on stocks both sides of the pond.

The new Chancellor has already shown he is not afraid to unwind pension policy decisions made by his predecessor when he unceremoniously dumped the proposed secondary annuity market. AJ Bell’s senior analyst Tom Selby looks at three further policy decisions the Chancellor may be considering to signal a new era of Government thinking on retirement savings.

The Government should establish a new independent Pensions Tax Commission and give a 10 year ‘no-change’ guarantee as part of a long-term drive to simplify and stabilise the UK savings system, AJ Bell says.

The vast majority of financial advisers back the introduction of a risk-based Financial Services Compensation Scheme levy, a new survey from platform provider AJ Bell reveals.

The Government risks causing a significant spike in pension fraud cases if it proceeds with reforms to allow savers to trade-in existing annuity policies without introducing extra protections, AJ Bell warns.

New analysis by AJ Bell compares the outcome of investing £100,000 via a pension and buy-to-let property over a 20 year period.

A fourth straight drop in US oil inventories and the announcement that OPEC’s Algerian summit could lead to production cuts are both boosting oil prices this morning, to the benefit of not just drillers and equipment suppliers but potentially the whole FTSE 100.

The weakness of the pound following the Brexit vote has resulted in earnings forecasts, dividend forecasts and dividend cover forecasts for the FTSE 100 all increasing over the last three months. Trading platform AJ Bell has analysed the consensus forecasts for all 100 members of the benchmark and aggregated them to provide a forward looking picture for the headline index.

In the newly formed role Hughes will join the team responsible for running AJ Bell’s recently launched managed portfolio service for financial advisers.

AJ Bell Youinvest has become the first UK investment platform to enable portfolio valuations and market quotes to be delivered via Amazon Echo, the voice activated speaker launched in the UK today.

Investment platform AJ Bell today launches a new Managed Portfolio Service (MPS) with an annual management charge of 0.25% + VAT.

Leading investment platform provider AJ Bell has announced the date and initial speakers for its Investival 2016 event.

The Government should seriously consider boosting the flexibility of the state pension by allowing early access in certain circumstances, AJ Bell says.

The George Osborne fuelled pension revolution could quickly run out of gas under the new Conservative party leadership. Brexit negotiations will be all encompassing and the Government may need to raise funds to shore up the faltering UK economy.

New analysis* from investment platform AJ Bell shows that 54 FTSE 100 companies who have funding deficits on their staff pension schemes paid out a total of £48 billion in dividends a year for the past two years. This is almost equal to the total deficit of their pension schemes which is £52 billion.

Most independent economic analysis suggests that leaving the EU will be detrimental to the UK economy. Whilst this is not certain, a Brexit would definitely be a leap into the unknown and that ambiguity would likely result in short term economic instability.

A number of factors have combined to drag the oil price back to around the $50-a-barrel mark - investment cuts by oil companies, falling drilling activity, a long-awaited decline in US oil inventories, production disruption in Canada, Venezuela, Nigeria, Libya and Iraq, all coupled with relatively steady demand.

AJ Bell Youinvest has become the first DIY investment platform in the world to complete a live share trade using Facebook Messenger, purchasing £500 worth of Facebook shares on 25 May 2016.
In April 2016, Facebook launched its Messenger Platform which enables firms to build automated customer services functions using ‘Chat bots’, computer programs that mimic conversation with people using artificial intelligence

AJ Bell Dividend Dashboard – 23 March 2016

Despite the Chancellor’s climb down on a radical overhaul of pension tax relief, there is still a danger that he moves to curtail the annual or lifetime allowances for pensions in the Budget next week.

The consultation into pensions tax relief has cost the Treasury £1.5 billion in the form of additional pension tax relief, according to leading SIPP provider AJ Bell. Pension savers have poured billions of pounds into pensions in fear of pension tax relief being curtailed or abolished in the forthcoming budget.

AJ Bell has seen a significant shift in the use of pension death benefits following the pensions freedoms.

In just 36 trading days this year, the FTSE 100 has risen or fallen by more than 1% from open to close on 24 occasions, the most in any year going back to at least 1995 – and that is before any further uncertainty created by the run up to the EU referendum on 23 June.

LIFT-Financial, one of the leading firms of chartered financial planners in the UK, has selected AJ Bell as its primary platform provider.

AJ Bell has launched a new suite of cash management tools for financial advisers on its Investcentre platform. The launch is the latest in a series of enhancements to the platform over the past 12 months.

As ISA season enters full swing, Russ Mould, investment director at AJ Bell, takes a look at market conditions and five funds investors could consider for the current market environment:

Global stock and commodity markets have had a torrid start to the year. Russ Mould, investment director at AJ Bell, takes a look at five indicators that can help investors cut through the day-to-day noise and work out whether stocks have further to fall or whether this is a chance to buy.

Platforms - Andy Bell, chief executive of AJ Bell:

“The big theme we are likely to see play out during 2016 in relation to platforms is profitability or, in many cases, lack of profitability.

The amount that can be contributed to a pension each year by people with no relevant earnings, currently £3,600, should be aligned with the Junior ISA allowance to encourage greater savings, particularly for children. This is one of a number of measures that investment platform AJ Bell would like to see announced by George Osborne in the Autumn statement.

50% of advisers are finding it difficult to advise clients on the new pension freedoms if they have less than £50,000 in their pension pot, according to new research conducted by investment platform AJ Bell. Almost 1 in 5 advisers find it difficult to advise clients on pension freedoms if they have less than £100,000 and for some advisers (5%) that figure rises to £150,000.

Barack Obama has just entered the final year of his presidential term and history shows the final year of a Presidency generates the weakest returns on average for the US equity market.

The distinction between financial advice and other information or guidance services has become blurred and this has two dangerous consequences.

AJ Bell today launches an online guided investment service which is one of the lowest cost in the market. There is no additional charge for the new service - investors just pay the normal AJ Bell Youinvest platform and underlying tracker fund charges. This means investors can hold a balanced ISA portfolio of £15,240 for an ongoing annual cost of just £33.15 (0.22%)*, a price that will be difficult to beat anywhere in the market.

In its response to the Treasury consultation on pension transfers and early exit charges, AJ Bell has called for all early encashment penalties that block access to the new pension freedoms to be scrapped.

The majority (59%) of financial advisers do not think the pension tax relief system needs to change, according to a new survey conducted by AJ Bell. Only a third of the 170 advisers questioned support the move to a flat rate incentive and there is almost no support for ISA style pensions.

The vast majority (82%) of financial advisers think the pension lifetime allowance (LTA) should be scrapped according to new research conducted by AJ Bell.