The financial services company reported on Thursday that it was only able to bring in £2.3bn of net inflows compared with £2.75bn over the same period in 2015 due to market volatility and lacklustre investor confidence.
Hargreaves also had to contend with a higher Financial Services Compensation Scheme (FSCS) levy of £5.5m, requiring the company to set aside an additional £0.9m in 2016.
The company did, however, see a promising 9% increase in its assets under administration to £60.3bn at 30 April 2016 from £55.3bn at 30 April 2015.
Its Vantage business also managed to attract a steady stream of new customers, expanding its clientele from 775,000 at 31 December 2015 to 813,000 by 30 April 2016. The total number of active clients also increased by 15% year on year with an additional 18,000 SIPP and 24,000 ISA accounts added.
The trading update also indicated that net operating revenue was 14% higher during the first four months of 2016 compared to the corresponding period last year.
Hargreaves’ chief executive, Ian Gorham, said the growth in client base and new business opportunities was encouraging considering the “challenging ISA season for the industry in the context of volatile market conditions, low investor confidence and 25% of investors quoting current uncertainty over EU membership as reducing their propensity to invest.”
Hargreaves’ share price fell to £12.63 from £12.85 this morning before stabilising at £12.70 by midday.