Vantage powers Hargreaves to record quarter

Hargreaves Lansdown gathered a record £1.16bn of net new assets during a quarter which saw it enter the FTSE 100 for the first time.

Assets rose 15% on the same period last year, during what is traditionally the wealth manager's busiest period.

Total assets under administration grew by £1.3bn (6%) from £22.3bn to £23.6bn over the quarter to 31 March 2011, powered by inflows to the group's direct to consumer Vantage platform.

The value of assets held on Vantage also rose by 6% from £20.9bn to £22.1bn over the period. This can be attributed to £1.1bn net new business inflows and a £0.1bn positive impact of the market and other growth factors.

Hargreaves' operating revenue for the third quarter (to 31 March 2011) was also 36% higher than the corresponding quarter last year. This was driven by a massive 51% increase in revenue from the group's Vantage division.

During the nine months to 31 March 2011, net business inflows to Vantage totalled £2.4bn compared with £2.3bn during the nine months to 31 March 2010.

Inflows increased across the board with new ISA contributions at £1,089m for the tax year ended 5 April 2011, compared with £812m the previous year. SIPP investments were £1.65bn, up on £1.35bn the previous tax year.

The number of active Vantage clients also increased by 20,000 over the third quarter, from 346,000 to 366,000. This compares to a rise of 18,000 new active clients in the third quarter of 2010.

Meanwhile, the value of assets held in Hargreaves Lansdown's Portfolio Management Service (PMS) and range of multi‐manager funds, increased by 5% from £2.1bn over the period. This includes £0.7bn (31 December 2010: £0.6bn) of Hargreaves multi‐manager funds administered through Vantage.

Ian Gorham, chief executive, says: " We have had an excellent quarter, especially given the comparatively unfavourable conditions.

"Where investment is made, we must give investors every possible reason to invest through Hargreaves Lansdown. Our market-leading position, excellent pricing, service and information will be enhanced by a raft of new initiatives in the next six months.

"These include Android and Apple mobile phone services, improved stockbroking functionality and tariff, and online overseas share dealing. We also expect to offer the new Junior ISA from November."

Hargreaves Landsdown's share price rose on the news, and was up 0.66% to 609.00p just after 9am.