HL’S INVESTMENT CASE
Hargreaves Lansdown has a history of innovation and market leadership combined with the scale, vision and execution plan to drive momentum for future growth.
Our client-focused culture and strategy enables us to build relationships with clients over their lifetimes as they grow and consolidate their wealth with us.
Leading track record
With more than 40 years’ experience, we are the UK’s largest direct-to-consumer (D2C) savings and investment provider1.
We help over 1.8 million clients with a proposition that supports a broad range of saving and investing needs. This includes a full suite of tax-efficient accounts, over 14,000 investment options, and Active Savings, which provides a home for cash savings.
Over 60% of the UK’s D2C platform clients choose HL as their main savings and investment provider2 and our client retention rate is 92.2%3.
Growing market opportunity
HL currently has over £142 billion of assets under administration, but the overall active personal pension market alone is worth £1 trillion. Add in cash savings and other financial investments and, by 2026, our addressable market is estimated to be £3.7 trillion4.
It’s an attractive market to operate in but there is a compelling client need too. HL’s Savings and Resilience barometer shows that only 13% of households are on track for a ‘comfortable’ retirement5 and, according to the FCA, one-third of the UK have less than £1,000 worth of savings6.
Everyone should be encouraged to build a financially secure future and, as we expand our range of products, we open up this market and provide a single home for all saving and investment needs.
With an estimated £3.7 trillion addressable market to go after, as the market leader, HL is well positioned to make the most of this growing opportunity.
Investing in future growth
We are investing to build a state-of-the-art client experience, combining the best of digital and human capabilities, delivered through an efficient and scalable platform.
Through our focused strategic investment, we are:
- Driving growth through our proposition, delivering a broader, more integrated and personalised range of products and services for our clients.
- Evolving our business to ensure it is efficient and scalable for the long term, combining the best of human expertise and automation to deliver at scale.
- Modernising our technology estate and organisational structure, to enable innovation at pace and ensure we can meet client needs as they evolve.
Strong financial position
Our operating model is resilient, with disciplined financial management supporting a robust balance sheet and financial position.
- Our revenue streams are diversified, with 84% ongoing in nature and high client and asset retention rates of 92.2% and 90.4% respectively7.
- We are highly cash generative, have a strong balance sheet, no debt, retain a surplus of capital over and above our regulatory requirement and have a track record of ordinary dividend growth.
- HL’s capital management framework sets out our approach to delivering sustainable and attractive shareholder returns over time. You can read more about this here.
1 Platforum D2C Market Overview February 2024
2 Boring Money 2023
3 HL Client Retention FY23 as of 30 June 2023
4 HL AUA as of December 31 2023 and HL estimates.
5 HL Savings and Resilience barometer. Comfortable retirement per the retirement living standards definition: £37,300 for a single person and £54,500 for a couple (as of January 2024).
6 FCA 34% of UK adults have less than a £1,000 in their savings, corresponding figure for 18-24 year olds at 47%.
7 HL Client and Asset Retention FY23 as of June 2023.