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Hargreaves profits jump 28% as it reveals pricing progress

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Hargreaves Lansdown has reported a rise in assets under administration, profits and client numbers while revealing further progress in pricing.

In its preliminary results for the year ending 30 June 2013, the platform says AuA rose 38 per cent to reach £36.4bn. Total client numbers were up by 76,000 over the year to hit 507,000.

Furthermore, the group says profit before tax increased by 28 per cent to £195.2m, following a 22 per cent rise in revenue to £292.4m.

Hargreaves Lansdown chief executive Ian Gorham says: “Investors’ desire for a market leading, modern and financially robust investing service have enabled us to once again produce record results. We announce that our clients have entrusted a further £5.1bn to us resulting in £36.4bn of assets under administration.”

The firm notes that negotiations over preferentially priced share classes, where adviser and platform charges are stripped out funds’ annual management charges, are “on-going”.

It adds that 68 per cent of the preferentially priced share classes negotiated for its Wealth 150 list of favourite funds offer a better deal than the standard unbundled share classes.

In another move, Hargreaves Lansdown plans to scrap the flat £1 or £2 platform fee it applied to some funds, typically index trackers, and launch a percentage-based model early next year.

Gorham says: “Our new RDR pricing structure will be specifically designed to be fair, attractive and excellent value for both small and large investors.”

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