Published: Fri, October 14, 2016
Economy | By Melissa Porter

Hargreaves Lansdown Assets Under Administration increases by GBP 5.9 bln

Hargreaves Lansdown Assets Under Administration increases by GBP 5.9 bln

Flows into Hargreaves Lansdown slowed between July and September this year, which the business blamed on investors' lack of confidence in the markets.

Hargreaves Lansdown recorded its highest ever quarterly revenue in the three months between June and September, as it benefited from the FTSE's strong performance since the European Union referendum.

"Despite the higher stock market levels, investor confidence has fallen and there remains much uncertainty about the future economic environment weighing on investors' minds", the company noted.

However, the company added that investor confidence was still low following the vote as inflows fell 22% compared to the same period past year.

In a trading update, published today, the company says the rise in assets and the strong demand from clients to trade shares in the wake of the Leave vote helped it reach record net quarterly revenues, rising 15 per cent to £90.6m.

Assets under administration also jumped by £5.9bn over the quarter, hitting £67.6bn.

In May, Hargreaves reported a sustained a drop in net inflows in the first four months of the year, despite seeing a 3% increase in the value of assets held by its Vantage service and an expanding client base.

Total active client numbers rose by 20,000, although this was 17 percent lower than in the first quarter of 2016.

These withdrawals largely came from the fund and share accounts where investments tend to be less sticky, and trading profits can be more easily withdrawn, it said.

Jittery punters took their cash off the table over the summer as Brexit threw investment plans up in the air, the UK's biggest funds supermarket Hargreaves Lansdown said.

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