Strategic report Governance Financial statements Other information OPERATING AND FINANCIAL REVIEW STRONG TRADING THROUGH COVID-19 Capturing the short-term opportunities whilst investing to thrive at the scale of our long-term potential. Assets Under Administration (AUA) and Net New Business (NNB) Our market share of the UK execution only market for share dealing Year ended Year ended continued to grow, hitting a new high of 43.3% (as measured by 30 June 2021 30 June 2020 Compeer’s XO Quarterly Benchmarking Report Q1 2021). £bn £bn During the year to 30 June 2021, we introduced 233,000 net These are Opening AUA 104.0 99.3 unprecedented times Underlying NNB 8.7 7.7 new clients (2020: 188,000 or 170,000 excluding direct book Market movement and other 22.8 (3.0) acquisitions) to our services and grew our active client base by but the Group has Closing AUA 135.5 104.0 17% to 1,645,000. The average age of new clients is consistent performed exceptionally with recent periods, albeit greater in scale, and they are behaving Hargreaves Lansdown provides the leading direct wealth similarly to recent equivalent cohorts in terms of growing their AUA through them. on the platform over time, diversifying their portfolios and using management service in the UK. The strength of our brand and the tax wrapped accounts. We are encouraged by the qualitative diversified offering, by asset class and wrapper, the quality of our aspects of these clients and the additional lifetime value they have client engagement and service, and the strength of our marketing brought to the Group as a result. capabilities has enabled us to deliver record net new client and net new business growth in the period. These are unprecedented times, This increased client population underpins future growth as clients but the Group has performed exceptionally through them. The add new money to their accounts, particularly through the use of additional scale we have gained across the financial year and our annual tax free allowances in the SIPP and ISA products. Over a relentless focus on client service positions us well for the structuralperiod of time, clients also typically consolidate their investments growth opportunity in the UK savings and investments market. through transfers onto our platform. This growth is supported by Net new business for the year totalled £8.7 billion (2020: £7.7bn) our continued high retention rates. driven by increased client numbers, continued wealth consolidation Our focus on service and the value our clients place on our offering onto our platform and strong trading through the COVID-19 is evidenced by client and asset retention rates remaining strong at period. Throughout the year we have been focused on colleague 92.1% and 91.4% respectively (2020: 92.8% and 92.1%). The client welfare and have remained open for business. As seen in the initial retention rate is quoted on our historic measure where we define months of COVID-19 we have continued to see strong growth in active clients as those with over £100 on the platform. We note net new clients, particularly amongst a younger demographic who that other providers quote this measure with active clients defined were particularly engaged with share dealing. as those with over 1 pence on their platform. For comparative purposes, the HL client retention rate on this basis would have been 94.8% (2020: 95.7%, 2019: 96.1%, 2018: 95.8%). 59 Hargreaves Lansdown Report and Financial Statements 2021