Investing
Hargreaves Lansdown reveals discounts on leading funds
Hargreaves Lansdown has revealed the exact details of its new clean pricing deals from leading fund groups including M&G, Newton and Schroders.
The direct to consumer platform revealed back in January it had secured discounted clean share classes on 27 funds which form its new Wealth 150+ list, with an average annual management charge (AMC) of 0.54%.
Today it reveals the deals behind the headline numbers. The list includes funds from First State, M&G, Artemis, Newton and a host of other groups, offering investors some of the most popular funds in the UK at a discounted rate.
Its wider Wealth 150 list, meanwhile, includes funds with an average AMC of 0.65%.
For example, Angus Tulloch’s First State Asia Pacific Leaders fund is available for 0.8%, versus the standard AMC of 0.85%, while the GLG Japan Core Alpha fund – run by Stephen Harker – can be picked up for 0.65%, versus the average price of 0.75%.
However, the list is also notable for the groups who have not made it on.
The likes of Jupiter and Liontrust have none of their highly-rated funds among the 27 on the Wealth Plus list, for example, while Henderson is another high profile group which is missing.
Just as notably, Invesco Perpetual’s Income funds – soon to be handed over by Neil Woodford to Mark Barnett before Woodford launches his own venture – have not been included, and also remain missing from the wider Wealth 150.
While there are some very low-cost funds included from the likes of Fidelity and Morgan Stanley, there are no tracker funds on the core list of 27 funds.
Hargreaves Lansdown’s head of research, Mark Dampier, said the range of funds provided investors with its list of best priced and best performing funds.
“Our investment team devotes over 30,000 hours a year to researching fund managers to identify the best in the market.
“The core investment principles which underpin our research process ensure that only the best funds make it onto the Wealth 150 and Wealth 150+.”
In many cases, the final prices are better than those negotiated by its rivals – Hargreaves says 25 of the 27 on the list are priced at at market-leading rates.
That is perhaps unsurprising given HL’s status in the D2C market and ability to generate flows for fund groups. Fidelity yesterday promised to refund the difference for investors looking to buy the same funds on its own platform.
The full list of 27 funds that have made it on to the list is as follows:
| Fund | Standard AMC | Wealth 150+ AMC |
|
Aberdeen Latin American Equity |
1% | 0.6% |
| Artemis Income | 0.75% | 0.66% |
| Artemis Strategic Assets | 0.75% | 0.66% |
| Artemis Strategic Bond | 0.5% | 0.41% |
| AXA Framlington Managed Balanced | 0.625% | 0.5% |
| CF Lindsell Train UK Equity | 0.65% | 0.45% |
| Fidelity MoneyBuilder Income | 0.4% | 0.3% |
| First State Asia Pacific Leaders | 0.85% | 0.8% |
| GLG Japan CoreAlpha | 0.75% | 0.65% |
| Invesco Perpetual Tactical Bond | 0.625% | 0.45% |
| Lindsell Train Global Equity | 0.65% | 0.45% |
| M&G Recovery | 0.75% | 0.65% |
| Marlborough Multi Cap Income | 0.75% | 0.6% |
| Marlborough UK Micro-Cap Growth | 0.75% | 0.7% |
| Morgan Stanley Sterling Corporate Bond | 0.4% | 0.15% |
| Newton Asian Income | 0.75% | 0.62% |
| Newton Emerging Income | 0.75% | 0.55% |
| Newton Global Higher Income | 0.75% | 0.62% |
| Newton Real Return | 0.75% | 0.62% |
| Old Mutual UK Alpha | 0.75% | 0.65% |
| Rathbone Income | 0.75% | 0.49% |
| Royal London Sterling Extra Bond Yield | 0.75% | 0.32% |
| Schroder Managed Balanced | 0.5% | 0.3% |
| Schroder Tokyo | 0.75% | 0.5% |
| SLI UK Smaller Companies | 0.85% | 0.65% |
| Threadneedle European Select | 0.75% | 0.65% |
| Threadneedle UK Equity Income | 0.75% | 0.65% |
Source: Hargreaves Lansdown
