Fund managers who had to battle a tough market in 2022, with investors looking to hold on to their cash amid recessionary fears and volatile stock markets, are now seeing a revival in investor sentiment as the global economic market stablises.

"Macroeconomic uncertainty continues but the improved activity demonstrates that as confidence returns, HL is well positioned to grow and support new and existing clients," Chief Executive Chris Hill said in a statement.

Shares of the retail stock broker and fund manager were up about 4% at 834 pence by 0825 GMT.

Hargreaves' asset retention of 89.1% was lower than the prior year as clients continued to withdraw cash during a period that saw the collapse of Silicon Valley Bank and Signature Bank.

The resulting U.S. banking turmoil drove global investor confidence to one of its lowest levels in the last 20 years, a survey in March showed.

Last week, British fund managers Schroders and St. James's Place reported a rise in assets under management at the end of March from the prior quarter.

The London-listed company reported net new business of 1.6 billion pounds, while assets under administration were up 4% from the prior quarter at 132 billion pounds.

The initial positive share price reaction could partially reverse once concerns on lower retention rate are taken into account, analysts at J. P. Morgan said in a note.

(Reporting by Sinchita Mitra and Radhika Anilkumar in Bengaluru; Editing by Sherry Jacob-Phillips and Clarence Fernandez)