Investments  

Hargreaves' wealth grows by £849m in a year

Hargreaves' wealth grows by £849m in a year

Hargreaves Lansdown co-founder Peter Hargreaves became one of the 50 richest people in the UK last year as his wealth grew by £849m in a year.

Data compiled by the Sunday Times attributes to Mr Hargreaves a net worth of £3.1bn.

This is likely to be the result of the sharp increase in the share price of Hargreaves Lansdown over the past year.

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The shares have risen from £14.47 to £18.82 in the past year.

Mr Hargreaves retains a 32 per cent stake in the company.

As FTAdviser previously reported, Mr Hargreaves has invested in Blue Whale, a fund management company over the past year.

He told FTAdviser he has around £2bn invested in equities.

FTAdviser also understands the Hargreaves Lansdown headquarters in College Square in Bristol is one of the assets in Mr Hargreaves' self-invested personal pension (Sipp).

Results for the first half of its financial year, released in February, showed Hargreaves Lansdown showed profit before tax for the six month period of £146.9m.

It attracted net inflows from clients of £3.34bn in the period.

Steve Lansdown, who co-founded Hargreaves Lansdown, was given a net worth of £1.7bn.

He has a 12.3 per cent stake in Hargreaves Lansdown.

As FTAdviser has previously reported, Mr Lansdown has become chairman of wealth management company Ravenscroft, which, like Mr Lansdown, is based in the Channel Islands.

He told FTAdviser the company manages all of his personal wealth, excluding his Hargreaves Lansdown stake.

He also has investments in Bristol City football club and Bristol Rugby.

The city fund manager Terry Smith saw his wealth increase by £30m during the year, to £250m.

Mr Smith, who is the son of a lorry driver from Forest Gate, east London, began his career as an analyst in the banking sector, before co-owning brokerage firms Collins Stewart and Tullett Prebon.

He then set up Fundsmith, an asset management company that manages the vast majority of his wealth.

He put the entire £115m he received for his shares in Tullett Prebon into the £14.4bn Fundsmith equity fund, which he runs with colleagues including Julian Robins.

Mr Smith's total investment in the fund is now more than £200m.

The fund has returned 132 per cent over the past five years, exactly double the 61 per cent return of the average fund in the IA Global sector in the same time period.

Fundsmith also has an emerging market investment trust. Mr Smith received £8m in pay last year.

david.thorpe@ft.com