Hargreaves Lansdown has reported a slowdown in net new business, marking a shift to negative flows into its investment platform this quarter.
- The platform’s assets under administration saw a modest increase, mainly due to favourable market conditions.
- Comparison with previous quarters highlights a significant decline in net new business and platform flows.
- There was an uptick in the Active Savings business, contrasting with overall platform outflows.
- The current financial landscape presents challenges for Hargreaves Lansdown amid a changing investment environment.
Hargreaves Lansdown, the UK’s largest DIY investment platform, has experienced a noticeable slowdown in net new business in the latest quarter. While assets under administration rose to £157.3 billion by 30 September, up slightly from £155.3 billion at the start of the quarter, this increase was predominantly driven by £1.5 billion of positive market movements rather than new investments.
The firm reported only £500 million in net new business, a distinct reduction from £600 million in the same period last year and significantly lower compared to £1.6 billion in the previous quarter. This downturn reflects a broader challenge in attracting fresh capital in a competitive market.
In a contrast to the overall platform performance, Hargreaves Lansdown’s Active Savings business marked an increase in net inflows, rising to £800 million. However, this positive development was overshadowed by the platform’s £300 million in net outflows, a significant reversal from £100 million in inflows in the corresponding period last year.
The challenges faced by Hargreaves Lansdown this quarter are indicative of wider trends and pressures affecting the investment industry. The shift to negative flows may signal investor caution and a reassessment of investment strategies in response to market volatility.
The recent trends suggest Hargreaves Lansdown must adapt to evolving market dynamics to resume growth in its platform business.
