HARGREAVES Lansdown shrugged off a dismal economic environment to raise funds under management to a record new level of £23.6bn in the past quarter, it said yesterday.
A 14 per cent rise in its customer base has brought £1.16bn of net new assets to the stockbroker and wealth manager since December 2010, it said in its interim management statement.
Assets under administration rose six per cent, or £6bn, compared with the same quarter in 2010.
Revenues from fees and charges jumped 36 per cent year-on-year to £53.3m as a result and analysts said the asset growth could only boost that further in the coming quarter.
Chief executive Ian Gorham said it experienced “an excellent quarter, especially given the comparatively unfavourable conditions” including earthquakes, Middle Eastern unrest and UK spending cuts.
Hargreaves, which joined the FTSE 100 blue-chip index in March, saw its shares close 1.8 per cent up at 616p.
The firm benefited from a steady flow of clients’ funds from its third-party funds, where it makes a one-off commission, to its own Vantage platform, where it receives regular fee income. Vantage saw a six per cent rise in its assets in the three months to March, from £20.9bn to £22.1bn.
Gorham issued a cautious outlook. “The full effect of public sector cuts, tax rises and a focus on debt reduction may affect the UK population’s investing behaviour,” he said.