Hargreaves warns low rates to keep dragging on returns

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Hargreaves Lansdown has said the low interest rate environment will continue to impact its revenues for the remainder of the year, with the business also ruling out any further moves on price for now as investor confidence wanes.

The D2C platform giant, reporting its interim results, said this morning it had felt the impact of declining investor confidence, as net new clients halved to 10,000 in the first quarter of its 2015 financial year. Net new business also fell from £1.26bn a year ago to £970m, although net revenue overall rose marginally from £70.1m to £70.8m. Assets under administration rose just £100m, albeit to a record £47bn, in the face of declining stock markets. Hargreaves said the uncertain backdrop had impacted results. "Potential stock market gains are a key incentive for retail investors t...

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