Wealth manager Hargreaves Lansdown posts fall in assets on risk-off mood

Hargreaves Lansdown logo is seen on a smartphone in front of displayed same logo in this illustration taken, December 1, 2021. REUTERS/Dado Ruvic/Illustration

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Aug 5 (Reuters) – British investment platform Hargreaves Lansdown Plc (HRGV.L) reported a fall in assets under management on Friday, as investors moved away from riskier assets with key global markets buckling under rising geopolitical tensions and inflation woes.

Global fund managers who saw their assets under management reach record levels during the pandemic are now witnessing an increase in their outflows, as investors become more cautious amid Britain’s inflation reaching a four-decade high.

The company reported assets under administration (AUA) of 123.8 billion pounds ($150.32 billion) for the 12-month period ended June 30, down from 135.5 billion pounds reported a year ago, and expects uncertain economic and geopolitical conditions to continue for the full year .

The British firm reported annual net new business inflows of 5.5 billion pounds, compared with 8.7 billion pounds a year earlier, and saw a 26% fall in its profit before tax to 269.2 million pounds.

($1 = 0.8235 pounds)

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Reporting by Sinchita Mitra in Bengaluru; Editing by Rashmi Aich and Saumyadeb Chakrabarty

Our Standards: The Thomson Reuters Trust Principles.

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