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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 reinforce the long-term relationships we have built with clients, attracting, engaging and retaining them over their lifetimes as they consolidate their wealth with us.

Leading Track Record

With more than 40 years’ experience, we have established ourselves as the UK’s largest direct-to-consumer (D2C) savings and investment provider, capturing 41.8% of the D2C market.

We support over 1.8 million clients in building their financial resilience through our breadth of proposition, maintaining lifelong relationships with a 92.2% retention rate.

Growing Market Opportunity

Our market has consistently grown over time, and the opportunity remains significant with a number of factors driving growth into the future.

A blend of secular shifts and structural trends are coming together to drive the biggest need for wealth management and financial services in generations. By 2026, it is predicted that the UK’s addressable wealth and cash market will hit £3.7 trillion in size, with people across the UK needing help and support with managing their financial futures.

HL currently represents £134.0 billion of a direct-to-consumer platform market which is predicted to hit £466 billion by 2026. However, our ambition is much bigger. With a £3.7 trillion addressable wealth and cash savings market predicted, our proposition offering clients a wide range of products, tax wrappers, a cash savings service and advice, delivers a clear opportunity to gain significant share and provide for clients to consolidate their wealth.

Secular shifts
Market Growth
Structural Trends

Investment in Future Growth

We are investing to provide the digital wealth management service of the future and the outstanding client experience our clients expect. Through our focused strategic investment, we are:

  • Building an enhanced proposition, delivering a broader and integrated range of products and services for our clients.
  • Evolving our business to ensure it is scalable for the long-term, combining the best of human and digital engagement to deliver at scale.
  • Developing our highly capable colleagues, offering first-class career opportunities and maintaining the best talent in the market to deliver our strategy.
  • Continuing to build our position as a responsible business, supporting our clients, colleagues and the wider community both in Bristol and the UK.
  • Setting ourselves up for the future, enabling innovation at pace to meet client needs as they continue to 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 83% ongoing in nature and high client and asset retention rates of 92.2% and 90.4% respectively.
  • We are highly cash generative, have a strong balance sheet, no debt and retain surplus of capital over and above our regulatory requirement.
  • We have a track record of dividend growth – we are good at what we do, and this has meant we have historically delivered progressive dividend growth with the opportunity for special dividends. At our Capital Markets Day in February 2022, we updated our dividend policy as the Board remained confident that Hargreaves Lansdown would have sufficiently strong financial, liquidity and capital position to execute its strategy without constraints and therefore committed that the ordinary dividend will grow by 3% annually throughout the period to FY24. In FY23, we increased our total dividend by 4.5% after positive financial performance in the year, and following discussions regarding the overall approach to capital allocation, acknowledging that we are currently in a period of investment and the importance of shareholder return, we expect to continue to grow the ordinary dividend at least 4% in the next financial year.