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Hargreaves Lansdown falls as quarterly flows disappoint

Published 19/10/2023, 08:43
Hargreaves Lansdown falls as quarterly flows disappoint
HRGV
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Proactive Investors - Hargreaves Lansdown (LON:HRGV) shares fell 5.7% to 694.7p after the UK's largest investment platform reported a weaker start than expected to its new financial year.

Net flows in the first quarter ended 30 September totalled £0.6 billion, compared to a City average consensus forecast of £1.1 billion.

Total flows comprised £0.7 billion into its Active Savings platform, and outflows of £0.1 billion from the investment platform.

Revenues of £183.8 million, were up 13% on a year ago, while total assets under administration were £134.8 billion at the end of the quarter, up from £134 billion at the end of the last full year but below the City consensus forecast of £135 billion.

Chief executive Dan Olley said: "Clients are looking to invest more in cash than risk-based investments, from our Active Savings offer, giving easy access to a range of banking partners, to money market funds and short-dated bonds."

Broker Peel Hunt (LON:PEEL) said coming in short on net flows "very much reflects market conditions, weak sentiment and demand for cash products".

"It is worth noting sharedealing volumes were down 7% compared to the previous quarter, 9% lower than the same quarter last year."

Read more on Proactive Investors UK

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