Strategic report Governance Financial statements Other information MARKET OVERVIEW CAPTURING GROWTH IN AN ATTRACTIVE MARKET CONTINUED Transfers in from across the wealth market Support across your lifetime The Lifetime ISA (LISA), launched in April 2017, Managing investments in one spectrum show our wide appeal to investors who Our proposition and service is designed to help is open to those aged 18 to 40 and can be used place with a trusted company currently hold assets elsewhere. Similarly, cash clients of all ages from seasoned investors to towards a deposit on a first home or towards transfers are significant as investors look to put those starting out. Our expertise and expanding saving for retirement. The allowance is capped at that makes things easy is an their money to work in risk based investments capabilities help existing and new clients navigate £4,000 per annum but is eligible to receive a 25% ambition for many investors. given the all time low in savings deposit rates or the complexities of investing and saving, bonus from the government. As at 30 June 2021 they move their cash into our cash management providing appropriate products and solutions for we have over 89,000 accounts with £907 million service, Active Savings. the young through to those at retirement in order of invested assets, which makes us the largest Managing investments in one place with a trusted to achieve their financial objectives. provider of LISAs. Many of our LISA clients are new company that makes things easy is an ambition ISAs to Hargreaves Lansdown highlighting how it serves for many investors and this consolidation process With the lowest interest rates on record, Stocks as a way of attracting a younger demographic to is a journey that many of them go through with and Shares ISAs remain extremely attractive and our platform. For those who were already existing us. Such consolidation of investments onto we have seen significant increases in flows and clients it helps strengthen the client relationship platforms has helped drive the UK D2C platform account openings into the various ISAs on our and enables us potentially to capture more of their market and this trend looks set to continue. platform. As at 30 June 2021, across the different investment wealth over time. Although there is a significant addressable types of ISA, we had over 1.1 million active Since their introduction in November 2011, market for execution only investing, financial accounts and over £55 billion of assets on Junior ISAs have proved popular and Hargreaves advice still has an important role to play as people our platform. Lansdown is the largest provider of Stocks and are often put off by the perceived complexities of The current ISA allowance of £20,000 provides Shares Junior ISAs, with an estimated 37% market investing, have insufficient time to devote to it or great scope for tax efficient investing, particularly share by value as at 5 April 2020 (based on HMRC just want the comfort that an expert is involved. for higher earners who stand to lose some of ISA statistics). Such advice can be ongoing or one-off in nature their annual pension allowance and are impacted Engaging with investors at a young age provides to address a specific issue or to ensure that by the lower lifetime allowances. The ISA is us with the opportunity to build a relationship that investment plans are on track. Hargreaves increasingly becoming a long-term investment will hopefully transfer into their adult years and Lansdown, with around 75 highly qualified plan for many and hence provides a significant potentially through their lifetime. Before the Junior advisers, is well placed to service such needs. opportunity for new business flows. According to ISA, the Government between September 2002 We believe that investors should have access HMRC, as at 5 April 2020, the Stocks and Shares and January 2011 operated a Child Trust Fund to appropriate cost effective advice at the point ISA market was estimated at £305 billion with an scheme (CTF). Cash was given to each child along they actually need it. additional £313 billion held in Cash ISAs and £5 with the opportunity for parents or guardians to billion in Junior ISAs. Based on recent HMRC data, add to the investment subject to an annual limit. the average annual amount subscribed into ISAs Some six million accounts were set up and are due over the past five tax years has been c.£70 billion. to mature between 2020 and 2029. Although many These statistics clearly demonstrate a significant of these CTFs will be small in value they present an opportunity to gather more assets into our core opportunity to engage with a distinct segment of ISA products. the population with a view to them becoming adult savers and investors on our platform. 21 Hargreaves Lansdown Report and Financial Statements 2021