20th May 2015 06:17
LONDON (Alliance News) - Hargreaves Lansdown PLC Wednesday reported an increase in assets under administration in the opening four months of 2015, bolstered by net inflows of GBP2.75 billion in a period including the crucial end of the tax year in the UK.
In a statement, the retail fund supermarket said assets under administration amounted to GBP55.3 billion at the end of April, an increase from the GBP49.1 billion recorded at the end of 2014.
"Asset growth was helped by both strong business levels and continued high client and asset retention rates of 93.4% and 92.7% respectively," Chief Executive Ian Gorham said in a statement.
Operating net revenue amounted to GBP96.9 million the the four months, compared with GBP97.1 million in the corresponding four months of the prior year.
"The positive impact of higher asset values and net new business inflows have been offset by the impact of lower margins earned on client money and funds held on the platform," Gorham said of the fall in operating net revenue.
The CEO said new pensions freedoms designed to give people in the UK more choice as to how they invest their pension pots have been a success, with clients showing a particular interest in pensions in the new tax year and with the implementation of the new rules.
"As one of the UK's largest pensions and drawdown companies, Hargreaves Lansdown has invested heavily in at-retirement support and planning tools, and has been one of the few companies in the UK fully ready to service the public at the start of pension freedoms. These preparations have paid off as the Group has benefited from both extensive new business and consolidation through inward transfers," Gorham said.
"We have also experienced lower-than-expected withdrawals from pensions as clients appear to be using the freedoms extremely sensibly, further evidence of the wisdom of trusting the British public with their own money," Gorham added.
The CEO said Hargreaves Lansdown now has 715,000 active clients and expects to pass the 1.0 million mark shortly.
The search for a new chief financial officer continues following Tracey Taylor's decision to stand down. Simon Cleveland, a Partner at Deloitte, "has indicated he is happy to continue in his role as interim CFO".
"Whilst applications, many from very senior industry figures, have been extensive, no suitable candidate has yet been selected. We consider it important to get exactly the right person for the job," Gorham said.
The CEO said it has appointed Vikki Williams to succeed Nigel Bence as chief operating officer. Williams joins on June 1 and has held senior roles at Barclays PLC and Hays.
By Samuel Agini; [email protected]; @samuelagini
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