Hargreaves Lansdown could be demoted from the FTSE 100 next week, according to early indications.
FTSE Russell, which manages the FTSE indices, announced that Hargreaves Lansdown could be demoted while Liontrust Asset Management is one of five firms set to leave the FTSE 250.
The actual review will be announced next Wednesday (November 29) using data from market close the day before.
Head of money and markets at Hargreaves Lansdown, Susannah Streeter, reflected on the forecasts.
She said the firm could be pushed out of the FTSE 100 by Intermediate Capital Group which posted strong first half profits.
This could help the firm replace Hargreaves Lansdown or maintenance products company RS Group, she said.
Streeter added: “A muted early trading session is expected for the FTSE 100 as the rumour mill continues to grind about the seasoning Jeremy Hunt plans to sprinkle into the UK economy to try and improve its growth prospects.
“Investors will be highly attuned to what the chancellor plans as part of that recipe and tax cuts now look set to be a key ingredient, even though they risk turning up the heat on inflation.”
While Hargreaves Lansdown saw a growth in profit before tax to the year ending June 2023, client growth slowed significantly, at 67,000 for the year down on the 233,000 net new clients achieved in 2021.
The firm could drop down to the FTSE 250, which Liontrust is at risk of leaving.
In the half year to September, Liontrust saw losses before tax of £10.1mn, compared with a profit of £14.1mn in the same period last year.
The period saw net outflows of £3.2bn, a significant increase from the £2.2bn seen in the first half of 2022.
Hargreaves Lansdown did not wish to comment on the speculation and Liontrust was contacted for comment.
tara.o'connor@ft.com
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