Hargreaves Lansdown, the financial services provider and asset management group, saw a record level of Assets under Administration (AuA) in the three months to March 31st despite the tough macro-economic conditions.
Total AuA increased to £26bn, up 11% on the £23.4bn reported in the three months to December 31st 2011, in comparison to the FTSE All-Share Index which rose by just 5.1%.
"The quarter under review remained a difficult period for the retail investment market. Investor confidence rose slightly but remains comparatively low. There remained a significant lack of innovative product or fund launches which are invariably a fillip to business," admitted Chief Executive Ian Gorham.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
He acknowledged that markets had "yo-yoed in line with the ever changing outlook for Europe" which remains a prime driver of the state of investor confidence.
Vantage AuA, the group's direct-to-private investors platform, increased by 11% from £21.9bn at the end of 2011 to £24.4bn by the end of March, attributed to £974m net new business inflows and a £1.59bn positive impact of the market and other growth factors during the period.
Total operating revenue in the quarter was £62.1m, up 17% on the preceding quarter, helped by higher asset values and new business inflows. Meanwhile the £175m generated in the nine months to March 31st was 16% higher than the same period the year before. During this nine-month before, recurring revenues now account for 80% of group operating revenues, up from 77% the year before.
The group remains debt free and said it has maintained a strong cash and balance sheet position, with a high surplus of regulatory capital.
BC
-
Who is the richest person in the world?The top five richest people in the world have a combined net worth of $825 billion. Who takes the crown for the richest person in the world?
-
Top 10 stocks with highest growth over past decade - from Nvidia, Microsoft to Netflix, which companies made you the most money?
We reveal the 10 global companies with the biggest returns since 2013. One firm has posted an astonishing 9,870% return, meaning a £1,000 investment would now be worth almost £82,000.
