Hargreaves’ new business weighed down by low investor confidence

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Hargreaves Lansdown has seen assets under administration grow around 10 per cent to £67.6bn, despite low investor confidence weighing on new business flows.

In a trading update, published today, the company says the rise in assets and the strong demand from clients to trade shares in the wake of the Leave vote helped it reach record net quarterly revenues, rising 15 per cent to £90.6m.

Demand was particularly boosted by pension freedoms and the transfers of child trust funds into Junior Isas.

But Hargreaves remains cautious on its market outlook.

It says: “Despite the higher stockmarket levels, investor confidence has fallen and there remains much uncertainty about the future economic environment weighing on investors’ minds.

“Future stockmarket levels and investor confidence will have a significant part to play during the remainder of our financial year.”

Total active client numbers rose by 20,000 in the past quarter, 17 per cent down on the same period last year.

Net new business flows also fell 22 per cent from £1.4bn to £1.1bn.

The firm says: “We remain confident in the execution of our strategy to take advantage of the structural growth opportunity in the UK savings and investments market to the benefit of our clients and shareholders.”

Last month, chief executive Ian Gorham announced his intention to leave the company, with the group’s current chief financial officer Chris Hill replacing him.