Brexit worries are beginning to bite at Hargreaves Lansdown
Investment giant Hargreaves Lansdown has said uncertainties over Brexit are hitting investors' confidence, as net inflows dipped.
The figures
Net inflows dipped to £2.3bn in the four months to the end of April, from £2.75bn in the same period last year.
That said, assets under management rose to £60.3bn, from £58.8bn last year.
And the number of active clients also rose, by 15 per cent from a year ago, from 715,000 to 822,000.
Meanwhile, year-to-date net revenues rose 12 per cent to £268.9m, from £241m last year.
Read more: Hargreaves Lansdown AUM swells as it grabs market share
Why it's interesting
After 2016 kicked off with unusually high volatility in equities markets, it's been a difficult year for any firm in the finance sector – which might explain why shares in Hargreaves Lansdown have fallen 15.4 per cent since the beginning of January.
But uncertainty over Brexit is making things worse: this morning the company said a quarter of investors had quoted current uncertainty over EU membership as reducing their propensity to invest.
That said, HL boss Peter Hargreaves has been an outspoken supporter of Brexit – in March he said it could be an "inspiration".
"I'm firmly convinced, that day – hopefully – we decide to leave, that little bit of insecurity, that little bit of unknown will be an absolute fillip to everyone," Hargreaves told the Today Programme.
"It will be a great incentive for us to go out and prove that it's right.
His investors might not be so convinced: shares in the company fell two per cent to 1,273p in early trading.
What Hargreaves Lansdown said
Ian Gorham, its chief executive, said:
Hargreaves Lansdown continues to maintain its market leading position as the most popular destination for UK retail investors, with strong new business and client growth for the period notwithstanding a challenging ISA season for the industry in the context of volatile market conditions, low investor confidence and 25 per cent of investors quoting current uncertainty over EU membership as reducing their propensity to invest.
In short
Uncertainty over Brexit has muted investor confidence.