Hargreaves Lansdown has once again been pipped to the number one position for the second year running, although not for want of growth.
The Bristol-based business’s gross sales have increased by approximately £800m to £7.4bn over the past year, according to figures by Matrix Solutions, making it hit the number two spot.
In addition, in mid-October, Hargreaves Lansdown reported net new business inflows of £1.43bn for the quarter covering the period from 1 July to 13 October – up 47 per cent over the same period last year.
Meanwhile, client and asset retention rates were recorded at 94 per cent and 93.7 per cent respectively for the quarter, above the 93.4 per cent and 92.7 per cent respectively seen in the last financial year.
HL’s head of financial planning Danny Cox said: “Our business is a one-stop shop for investors. Eighty-five per cent of our business is done in a non-advised basis. Our business model, however, allows clients to dip into the advisory process when they need it.
“We have 76,000 clients – that is a huge pool of clients who will at some stage of their life need financial advice.”
The loosening of the restrictions on pensions has had a positive effect on both HL’s advised and non-advised arms, Mr Cox said, adding that there is a greater need for financial advice to help people find the retirement solutions best suited to their needs.
On the other hand, market volatility is among a number of future challenges, according to Mr Cox. A large proportion of HL’s income is derived from fees based on client assets – meaning that lower stock markets can reduce income.
Mr Cox said: “People usually tend to invest less money in a volatile environment; however, we are not seeing this trend to a great extent. I think people are more used to the fact that markets fluctuate.”
Growth will remain a motif for the business in the future, Mr Cox said, adding that the firm is eyeing a robo-advice proposition, positioned as a supplementary service.
