Shares of Hargreaves Lansdown (LSE: HL) fell by 2% in early trade, despite the brokerage company revealing that assets under management increased by £100m in the three months to 30 September to stand at a record £47bn.
The company added 10,000 new clients, which it said was a good result in light of “challenging investment conditions”. During the period the FTSE All-Share index fell by nearly 2%, meaning retail investors had less incentive to chase after potential stock market gains.
Geopolitical uncertainty and economic fears weighed on UK shares and investor confidence remains low. As a result, Hargreaves expects new business will be skewed to the second half of the year, with the end of the tax year acting as an incentive for clients to invest.
The chief executive, Ian Gorham, commented:
“As ever, future stock market levels and investor confidence will have a significant part to play during the remainder of our financial year. However, we remain confident of growing the business to the benefit of our clients and shareholders.”
Hargreaves was able to hold on to 92% of its clients during the period due to a strong emphasis on customer service. It added that it intends to develop a range of new cash-related services for clients.