Strategic report Governance Financial statements Other information STRATEGY KEY PERFORMANCE INDICATORS CONTINUED Excellent client service Excellent client service Net new business (NNB) Client retention rate Represents subscriptions, cash receipts, cash Progress for the year and stock transfers in, less withdrawals and • A record year for NNB including our best ever Based on the monthly lost number of clients, Progress for the year assets transferred out. tax year-end . as a percentage of the opening months’ •Remained open throughout COVID-19 clients and averaging for the year. A lost ensuring all our core services were available Why • Record numbers of clients subscribing to client is deemed as one who falls below to our clients. NNB is an indicator of the trust and security their ISA (up 39% to 535,000) and contributing a holding of £100. clients place in Hargreaves Lansdown along to their pensions (up 8% to 224,000). •Through increased use of data analytics we with the perceived value of the client offering. Why have increasingly tailored our content for • Increased our market share of the UK D2C The greater the assets gathered, the greater Platform space to 42.9% and grew AUA on A high client retention rate is a sign that clients clients creating a more engaged experience the revenue. are happy with the service we provide and for both new and existing clients. our platform by 30% to £135.4 billion. that it fulfils their investment needs. The Enhanced functionality of the mobile app Principal risks Result • longer a client is with Hargreaves Lansdown, including Active Savings balances. Strategic and operational. £8.7BN the more assets they are likely to accumulate. (2020: £7.7bn) High retention provides more certainty of •As with previous periods of exceptional future earnings. market volatility, such as the global financial crisis, some of our newest clients decided that the experience of investment was not right for them and withdrew from the service. Although the vast majority of clients have remained with us there has been a slight impact on our retention rate. Principal risks Result Strategic and operational. 92.1% (2020: 92.8%) 27 Hargreaves Lansdown Report and Financial Statements 2021