19th May 2016 08:01
LONDON (Alliance News) - Fund supermarket Hargreaves Lansdown PLC on Thursday said its assets under administration grew in the first four months of 2016, though net inflows slowed year-on-year as Hargreaves said uncertainty ahead of the UK's referendum on its European Union membership is weighing on investor confidence.
The FTSE 100 wealth manager, which enables retail investors to invest in stocks and other financial assets through its execution-only platform, said total assets under administration grew to GBP60.3 billion at the end of April from GBP58.8 billion at the end of December.
Net inflows in the first four months hit GBP2.30 billion, less than the GBP2.75 billion that Hargreaves saw flow in during the first four months of 2015. However, for the ten months to the end of April, the first ten months of the group's financial year to the end of June, cumulative total net inflows hit GBP5.07 billion, up from GBP5.0 billion in the previous financial year.
Revenue for the first ten months of the financial year rose to GBP268.9 million from GBP241.0 million, Hargreaves said. The group said its revenue margins for the year remain in line with previous guidance.
Hargreaves said total active clients at the end of April stood at 822,000, up from 715,000 a year earlier. Net new active clients for its Vantage direct-to-private investor platform grew to 40,000, up 38,000 since the start of 2016.
"Hargreaves Lansdown continues to maintain its market-leading position as the most popular destination for UK retail investors, with strong new business and client growth for the period notwithstanding a challenging ISA season for the industry in the context of volatile market conditions, low investor confidence, and 25% of investors quoting current uncertainty over EU membership as reducing their propensity to invest," said Chief Executive Ian Gorham.
An ISA is an individual savings account, a tax-advantaged savings scheme.
Shares in Hargreaves were down 1.9% to 1,276.00 pence early Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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