Hargreaves Lansdown reports record AuA despite weak investor confidence

14th Oct 2014 07:40

Financial services group Hargreaves Lansdown said assets under administration (AuA) reached a record high in the first quarter, but investor confidence took a hit after the recent volatility across global markets.The ISAs, pensions, funds and shares company said AuA totalled £47bn by the end of September, up from £46.9bn three months previously.Net new business inflows amounted to £0.97bn, while net client numbers rose by 10,000.The company said its first-quarter results "must be considered in light of the prevailing conditions for investment".It pointed out that the FTSE All-Share Index fell by nearly 2% during the period, compared with gains of 5% the year before and 4% before that.Hargreaves said: "Potential stock market gains are a key incentive for retail investors to act and have not been present this quarter, as markets have reflected uncertainty regarding the Scottish referendum, concern over Middle East and Ukrainian conflicts and unfavourable Eurozone economic data."Investors "stayed on the sidelines", the company said, as IMA total UK net retail fund sales declined by an average 39% and UK retail stockbroking trades fell 13% in July and August.With investor confidence in markets "significantly lower", Hargreaves said that client activity may be weighted towards the second half when the tax year-end traditionally acts as an incentive for customers to invest.Chief executive Ian Gorham said: "As ever, future stock market levels and investor confidence will have a significant part to play during the remainder of our financial year. However, we remain confident of growing the business further to the benefit of our clients and shareholders."