HL. EXPANSION..........31 Mar 2014 09:21
<b>Hargreaves Lansdown to launch equity research arm
31 Mar 2014 | 08:01</b>
Nick Paler
Categories: Equities Topics: Hargreaves lansdown | Stockbroking gorham-ian
inShare
Hargreaves Lansdown is to expand its business with the creation of a new stockbroking research arm, Investment Week can reveal.
The group is building an equity research team from scratch, having previously only provided general information and news updates on individual UK shares, rather than recommendations.
The new team will provide Hargreaves’ clients with analyst notes on stocks, and a house view.
It will also mean Hargreaves will be giving buy/sell recommendations on UK shares for the first time.
The move will see the business challenge established research teams, including major brokers such as Barclays.
Hargreaves is making the move after becoming the country’s largest execution-only stockbroker this year – the group has placed one in five of all retail trades in this area so far in 2014.
The new team will be based in Bristol and report to a new head of equity research, for which the D2C giant is currently recruiting.
Ian Gorham (pictured), chief executive, said the plans are an extension of the service Hargreaves already provides in the funds space.
“HL Vantage is the leading direct to consumer investment supermarket in the UK, and this is a natural development of our service,” he said.
“It aims to provide our clients with the best combination of information and service on all the investments they choose to buy, whether funds, shares, passives, ETFs, or investment trusts. Clients value our expertise as well as our service.”
Hargreaves Lansdown’s stockbroking arm has seen its revenues grow substantially in recent months, boosted by increasing client numbers, as well as a number of high profile IPOs including Royal Mail and Direct Line.
As a result, stockbroking income for the first half of the 2014 financial year climbed 71% compared to the previous half year, hitting £18.3m.
The percentage of assets in shares held on Vantage is currently 38%, the group said, and the group will aim to build on this with the launch of the research arm.