AUM rise 5% at Hargreaves Lansdown

Wealth manager Hargreaves Lansdown said total assets under administration rose 5% to £23.4bn for the six months ended 31 December 2011 while underlying pre-tax profit increased 21%.

"In spite of unfavourable conditions and lower investment values, we continued to see healthy net business inflow, only marginally down on our record previous year," the group said in a company statement.

Pre-tax profit rose to £72m from £56.3m while revenue increased 16% to £112.9m.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Net business inflows fell 13% to £1.16bn.

"This record result has been achieved despite the continued backdrop of economic uncertainty both at home and abroad. Investor confidence has deteriorated during the last 12 months," Hargreaves said.

Total UK net retail sales of funds have fallen to levels only previously seen during the credit crunch of 2008. Hargreaves noted that the UK is also courting a double-dip recession and the average member of the UK investing public feels poorer today than a year ago.

Group operating margin was up 2.5% during the period and an interim dividend of 5.1p per share has been offered, up 13%.