Hargreaves reports record levels of AuA in Q3

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.

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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