Hargreaves Lansdown shares climb as good momentum continues in April

By Prerna Bedi

(Reuters) -British investment platform Hargreaves Lansdown said it has seen good momentum in April after adding 1.6 billion pounds ($2 billion) in net new business in the previous quarter, sending its shares to a nine-month high on Tuesday.

Shares in the firm were up 7.9% at 848.2 pence at 0724 GMT, after touching a nine-month high of 853 pence.

The net new business reported by the platform for the March quarter was up from 400 million pounds in the previous three-month period, as clients focused on using its pensions and savings offerings.

"We are pleased to see momentum continue into April as clients take advantage of the benefits of investing at the start of the tax year," the London-listed firm said.

In a statement, CEO Dan Olley said the group had "welcomed 34,000 net new clients in the (March) quarter, reflecting the increasing popularity of our newer products such as ready-made pensions, our cash ISA offerings and Active Savings".

UK asset managers have in recent years seen higher outflows and lower retention rates as the conflicts in Ukraine and Gaza and uncertainty over interest rates proved a drag on confidence.

"The pick-up in net new clients is very welcome... indicating successful marketing and a better market environment in general. Client service efforts appear to have paid off," Jefferies analysts said in a note.

Hargreaves Lansdown's assets under administration rose to 149.7 billion pounds from 142.2 billion pounds as of Dec. 31, 2023.

($1 = 0.7983 pounds)

(Reporting by Prerna Bedi in Bengaluru; Editing by Subhranshu Sahu and Jan Harvey)