Hargreaves Lansdown says it has seen “significant inflows” of pension assets following the pension freedoms, with a swing to Sipp investments rather than stocks and shares Isas.
In its interim results for the six months to 31 December, the company says the average new contribution into a Vantage Sipp rose by 13 per cent over the period, with 25 per cent more clients contributing to their Sipp than in the first half of last year.
But the average subscription in the Vantage stocks and shares Isa fell by 6 per cent, with a 12 per cent decline in the number of clients subscribing. This has been attributed to “significant market volatility”, but Hargreaves says the run-up to the end of the tax year remains key for new Isa business.
Hargreaves is pressing ahead with plans to launch cash deposit and peer-to-peer lending services, which are planned for the autumn. The company says it can deliver these services without the need of a banking licence.
It is also planning to launch a High Income fund multi-manager fund later this year, having launched a Strategic Assets fund last week.
Its multi-manager funds were a bright spot in the results, with inflows of £369m in the six months, up 35 per cent on the same period last year. Assets in the multi-manager funds now stand at £5.9bn.
Overall Hargreaves has posted a pre-tax profit of £108.1m, a 6 per cent increase compared with the £101.9m profit made at the same time in 2014.
Total assets under administration are up 20 per cent year-on-year, from £49.1bn to £58.8bn.
Hargreaves chief executive Ian Gorham says: “Against a backdrop of fluctuating stockmarkets, Hargreaves Lansdown has continued to be the most popular destination for UK retail investors, with excellent new business for the period.
“In particular the pensionfreedoms continue to attract huge interest as we prepare for the important tax year-end period.”