Hargreaves Lansdown’s Active Savings pulls in £4bn
The investment platform reported it’s seen an increase of £1bn in assets under administration (AUA) for its Active Savings in a year.
This has taken holdings from £3bn as at 30 April 2021, to £4bn as at 30 April 2022. Customer numbers during the year have also risen from 87,000 to 100,000.
Hargreaves Lansdown said it offered six market leading rates over the second half of April, and added Santander International, bringing the number of partner banks up to 15.
Active Savings was launched in 2018 offering customers a ‘one-stop-shop’ solution to take the hassle out of chasing the best interest rates.
Meanwhile as part of its trading update, it reported client growth of 90,000 year to date, which is down on the previous year’s new client figure of 126,000.
However, it’s seen net new business of £4.8bn year to date (£2.5bn in the four months to April), taking AUA to £132.3bn. It said this figure reflected adverse market movement throughout the period, driven partly by exposure to global equity markets, particularly US technology stocks with the Nasdaq down 21% over the period.
Revenue for the period stood at £196.5m “in line with expectations”.
Other highlights include a record 747,000 clients contributing to their ISAs and pensions across the tax year ending 5 April 2022, and an increase in its Trustpilot score from 3.7 in 2021 to 4.3 now.
Chris Hill, chief executive officer, said: “We are off to an encouraging start on the strategic initiatives we set out at our Capital Markets Day, which will build our capability to innovate and scale and enable us to take advantage of the growth in the wealth management sector. Our initial focus is on driving efficiency and cost savings in our operations whilst ensuring we maintain the market leading service our clients expect from us particularly in these current uncertain times.
“The challenging backdrop driven by unprecedented macro-economic and geo-political events has impacted markets and investor confidence, in turn leading to moderated flows and asset levels with net new business of £2.5bn in this period. We saw a significant step up in flows in March and April from our tax year end campaign which focused on the benefits of long-term saving and investing, with £1.8bn of tax wrapped inflows leading to a record 747,000 clients contributing to their ISAs and pensions this tax year.”