Hargreaves Lansdown and St James’s Place cash-in on ISA season as assets grow

Hargreaves Lansdown and St James’s Place saw strong inflows in the first quarter of 2024, bolstering the platforms’ assets under management despite an uncertain economic backdrop.

HL’s AUM increased by £7.5billion to a record £149.7billion between January and the end of March, while SJP funds grew by about £10.8billion to £179billion over the same period.

Higher asset volumes meant HL enjoyed stronger dealing volumes and platform revenue, which offset lower net interest margin gains and cash balances, and boosted total turnover by around 6 per cent year-on-year to £199.7million.

HL’s posted £1.6billion of new business during the quarter, as well as 34,000 more clients attracted by the group’s self-invested personal pensions, ISAs, and active savings accounts.

Dan Olley, chief executive of Hargreaves Lansdown, said a record number of its customers contributed to their pensions over the period, while 270,000 Britons now hold £10billion in active savings accounts with the firm.

In late January, Hargreaves launched a multi-bank cash ISA that allows customers to spread their cash ISA across multiple banks and among easy access, limited access and fixed-term accounts.

The FTSE 250 company observed momentum continued into April due to clients taking advantage of the opportunity to invest at the beginning of the new tax year.

Olley added: ‘We continue to make good progress against our priorities for the year – improving our client proposition, controlling our costs and increasing our execution pace so that we can capitalise on the significant growth opportunities that lie ahead.’

Concerns: SJP’s latest trading update comes amid a review by the blue-chip firm, Britain’s largest wealth manager, into historic client servicing records

SJP assets grow – but outflows remain ‘elevated’  

SJP’s first quarter was bolstered by stronger investment returns and around £710million of net inflows.

However, the group said gross outflows remained at an ‘elevated level’ as cost-of-living pressures led customers to take out money to meet ‘continued financial needs’.

SJP’s latest trading update comes amid a review by the blue-chip firm, Britain’s largest wealth manager, into historic client servicing records.

It has already set aside £426million in possible refunds for customers who paid for annual reviews they never received.

Mark FitzPatrick, chief executive of SJP, said the company was ‘making good progress’ with the review, which it intends to publish alongside its half-year results over the summer.

He added: ‘While the outlook for the macroeconomic environment remains uncertain, our business is fundamentally in good shape as we continue to build our client base, grow adviser headcount, increase funds under management, and deliver for our clients.’

Hargreaves Lansdown shares jumped 5.4 per cent up to 845.8p on Tuesday morning, while St James’s Place shares were 1.8 per cent lower at 436.8p.