Hargreaves buys £90m client bank from BlackRock

4,300 clients will transfer over to the Hargreaves platform

Hargreaves Lansdown is to acquire £90m of assets from world’s largest money manager BlackRock.

The deal, subject to regulatory approval and set to happen in October, will allow up to 4,300 BlackRock clients to transfer to Hargreaves’ Vantage platform free of dealing charges.

Clients have the choice to transfer assets into Hargreaves’ investment trust savings plan or investment trust stocks and shares Nisa schemes.

This means BlackRock will cease to provide its in-house investment trust savings  plan and wrappers but will continue to manage the underlying investments at those trusts.

This marks the fifth similar transfer to the UK’s largest direct broker in the past two years, which saw Hargreaves buying more than £500m in combined assets from RIT Capital Partners, Legg Mason, Jupiter and JP Morgan Asset Management.

In 2015, £370m was transferred from JP Morgan AM to Hargreaves’ platform on behalf of 7,000 clients as the US asset manager stopped offering direct access to some products including its cash Isa and Sipp.

BlackRock head of UK investment trusts Simon White says the move reflects clients’ increasing need to move away from paper-based systems to manage their accounts.

He says: “After careful consideration, we have concluded that investors will recognise the advantages provided by Hargreaves Lansdown, which offers increased functionality with mobile and online account management and dealing as well as the option to manage investments by telephone and post.”

Hargreaves currently holds £4bn of investment trusts.

Chief executive Chris Hill says: “We help over 900,000 people manage their investments across funds, shares and investment trusts through a combination of our knowledge, expertise and technology that makes it easy.

“We are pleased to support BlackRock’s decision and look forward to welcoming these new clients to our range of services.”