CompaniesApr 19 2012

Hargreaves Lansdown reveals surge in assets to £26bn

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Bristol-based discount broker Hargreaves Lansdown has reported a surge in assets under management in the first three months of 2012 to a record level of £26bn on the back of a sharp rise in net inflows.

Ian Gorham, chief executive of Hargreaves Lansdown, said the business enjoyed net inflows of £1bn in the three months to 31 March 2012 and cumulative net inflows of £2.2bn in the nine months to 31 March 2012.

Overall, assets under administration increased by £2.6bn in the three months to 31 March 2012. Year-to-date revenue for the business is up by 16 per cent.

The value of assets held within the Vantage service, the group’s direct-to-investor platform, increased by 11 per cent from £21.9bn at 31 December 2011 to £24.4bn at 31 March 2012.

This increase was attributed to £974m net new business inflows and £1.6bn value growth over the period. During the nine months to 31 March 2012, net business inflows to Vantage totalled £2.1bn, compared with £2.4bn during the nine months to 31 March 2011.

The number of active Vantage clients increased by 17,500 over the third quarter, from 396,000 as at 31 December 2011 to 413,500 as at 31 March 2012.

The number of active accounts held by these clients increased from 608,000 to 631,000, including an increase of 7,000 Sipp accounts and 12,000 Isa accounts, taking the totals to 140,000 and 331,000 respectively.

The value of assets held in Hargreaves Lansdown’s Portfolio Management Service and range of multi-manager funds increased by 9 per cent from £2.2bn as at 31 December 2012 to £2.4bn as at 31 March 2012.

This figure included £0.8bn of Hargreaves Lansdown multi-manager funds administered through Vantage.

Mr Gorham said the quarter under review remained a difficult period for the retail investment market. While investor confidence rose slightly, he said it remained comparatively low.

Mr Gorham said there also remained a significant lack of innovative product or fund launches which were “invariably a fillip to business”.

However, despite these conditions, he said the company has fared “exceedingly well”.

Mr Gorham said: “During the period leading up to the end of the calendar year we indicated the potential for a slowdown of asset gathering given economic conditions.

“However, our historically busy time leading up to the end of the tax year has been excellent, with net new business in February and March 2012 matching last year’s record equivalent months.

“However, any short term growth in investor confidence or improvement in stock market outlook would be a surprise.”