Hargreaves revenues up, but inflows drop

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”.Meanwhile, a record net quarterly revenue of £90.6m was also reported for the three months, up 15% on last year’s £78.5m.In a trading update for the three months to 30 September, Hargreaves said despite higher stockmarket levels, such concerns have impacted new business flows which fell to £1.11bn for the period, compared with £1.43bn for the same quarter past year.Share trades rose 49pc compared to the same period previous year.”New money and transfers in have been comparable to a year ago but we experienced higher levels of cash withdrawals in the early part of the quarter following the European Union referendum, particularly from the Fund and Share account where investments tend to be less sticky and trading profits can be more easily withdrawn”.Assets under administration also jumped by £5.9bn over the quarter, hitting £67.6bn.Net new business inflows for the first-quarter declined 22% to 1.11 billion pounds.Shares in the company, down 20% this year, fell another 26p to 1211p as the City focused on the falling new business and slowing growth in the number of active clients.”Future stock market levels and investor confidence will have a significant part to play during the remainder of our financial year”.Jittery punters took their cash off the table over the summer as Brexit threw investment plans up in the air, the UK’s biggest funds supermarket Hargreaves Lansdown said.

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