Hargreaves Lansdown amasses record AUM and net inflows

16th Apr 2014 07:32

Hargreaves Lansdown amassed a record level of assets under administration (AUA) and net inflows in the first three months of the year as investor sentiment improved. The financial service company reported AUA of £45.7bn, up 30% on 2013, and net inflows of £1.83bn, a year-on-year increase of 1.6%.The value of assets held within the Vantage service, the group's direct-to-private investor platform, rose by 5.4% to £43.1bn at March 31st, compared to £40.9bn at the end of 2013. Revenue climbed 6% to £73.7m, as new clients and accounts offset a 1.5% fall in UK stock markets. Total active clients at the end of the period increased to 617,000 from 483,000 last year."Our first class service, investor confidence and the attraction of equity investment in comparison to cash in the continued low interest rate environment have all contributed to our continued growth," said Chief Executive Ian Gorham."Positive stock markets around tax year-end can be helpful and given that the FTSE All-Share index fell 1.5% in the key quarter to March, compared to a 9.3% increase in last year's comparative quarter, we are additionally delighted with our performance."During the period the group underwent a transition ahead of the launch of the Retail Distribution Review in April last year, which requires financial advisers to meet a minimum level of qualifications and be more transparent with costs. Hargreaves said that in making these changes it was able to reduce the cost of investing for the majority of clients while delivering strong results at the same time. "We look forward with optimism to a successful full year and new and exciting opportunities," the firm added. RD