Bristol-based wealth manager Hargreaves Lansdown continued to attract new money during its first quarter – up 24% at £680m. But it said that assets under administration had fallen 9% to £22.3bn in the three months to September 30 against a background of market weakness and fears about a possible double-dip recession.
The fall in stock markets during the period had understandably led to a decrease in the value of assets under administration, said chief executive Ian Gorham.
He added: "Net new business, revenues and client acquisition all show a healthy increase on the same period in 2010 despite the FTSE All Share index decreasing by 14% in the period and the investing landscape being dogged by volatility and macro-economic uncertainty."
While uncertainty remains over sovereign debt and default and a possible second recession, it is increasingly likely retail investors will feel they need more pounds in their pocket and may continue to defer new investment decisions, he warned.
"The measures that our government, the European Union and other world leaders introduce, in order to reduce countries deficits and restore political stability, will no doubt be a key factor in determining whether and when confidence returns to the financial markets," he added. "In the meantime, we will continue to build on our investment supermarket strategy, providing clients with the breadth of assets and quality services they want at competitive prices.
"Already this year we have successfully improved the functionality of our stockbroking service and lowered the dealing tariffs. This has helped to win both new clients and new business from existing clients. November will see the launch of the Junior ISA where those under the age of 18 can save £3,600 per tax year into an account with us. To date we have seen over 12,000 people registering an interest in this account. We also continue to progress our Corporate Vantage offering.
"These positive results need to be seen in context, being delivered in a difficult period in stock markets. I believe that in spite of the current economic uncertainties the company remains well placed to continue to grow client numbers and assets. We remain as focused as ever on the needs of our clients while continuing to invest in long term initiatives to seize on opportunities afforded by our ever growing reputation."
The shares closed up nearly 4% or 18.9p at 500p.
