View more on these topics

Hargreaves eyes better disclosure with low-cost fund launch


Hargreaves Lansdown is launching a range of in-house, low-cost equity funds in to a bid to step up the dialogue between fund managers and investors.

The first in the range, the HL Select UK Shares fund, launches on 1 December and will be run by Steve Clayton. The fund will sit in the IA UK All Companies sector and will be a best ideas portfolio of around 30 holdings.

Hargreaves says investors will be able to see a breakdown of every shareholding, detailed explanations behind the fund’s holdings, and monthly portfolio performance reports.

The investment manager, which already has a £7bn multi-manager fund range, hopes the new suite of funds will make it easier for investors to communicate with the fund managers.

Clayton says: “Investing shouldn’t be a black art, understood by the few, nor should it be a black box, where you just take what you’re given without understanding why.

“We want our investors to really understand what is happening to their money, and why their fund manager bought and sold the stocks they did. HL Select UK Shares investors will be told why we hold the shares we do. And when we change the portfolio, we’ll explain what’s moved in and out, and why we did it.”

The fund will invest in companies “with exceptional products and services” that should prosper in any economic environment.

He says: “Almost 30 years investment industry experience has taught me that if you can invest in high quality growth businesses, that can compound their earnings year after year, it has potential to create enormous value. This fund‘s portfolio will be run with that differentiated philosophy in mind, focusing on companies strong enough to be in charge of their own destiny. The potential for sustainable long term growth is our main objective.”

Hargreaves Lansdown is also hoping to attract investors through competitive pricing.

The HL Select UK Shares fund has a £1 fixed launch price for applications before the 30 November. Investors will be able to access the fund with a lump sum of £100 or £25 per month.

With an ongoing charge figure of 0.6 per cent, the firm claims the fund is “cheaper than 90 per cent of active funds in the IA All Companies sector”. A Vantage platform fee of up to 0.45 per cent will also apply.



Hargreaves Lansdown calls on Government to reconsider Lloyds share sale

Hargreaves Lansdown has called for the Government to do a U-turn on plans to cancel the public sale of Lloyds shares. Earlier this month the Chancellor Philip Hammond announced the Government would not be selling its £3.6bn stake in the bank to retail investors, but will gradually sell the shares back to the market over […]


New world order: Have Hargreaves and SJP had their day in the sun?

Wealth management giants Hargreaves Lansdown and St James’s Place are said to be under threat as the pressures of a changing investment market and a tough regulator are brought to bear. Analysts suggest the Hargreaves model is particularly at risk, with financial services industry growth likely to plateau, the looming threat from the likes of […]

Creating opportunity out of change

By Denise Wond, marketing manager The buy-to-let market has recently been the subject of a raft of tax changes, all of which make it a less profitable and less appealing proposition for investors. In response, we’ve seen a dip in demand for BTL mortgages and that’s bad news for many advisers who will now be looking […]

Apple: a stellar technology story

By Ali Unwin, head of technology sector research

Apple recently announced the highest-ever recorded quarterly net profit ($18bn), with the sale of 74.4 million iPhones helping the company deliver $74.6bn of revenue for the quarter ending December 2014. These sales were largely driven by strong demand for the new iPhone 6 and iPhone 6 Plus. Highlights included Chinese iPhone sales doubling year-on-year and unit growth of 44% in the US — supposedly a well-penetrated market. Apple ended the quarter with $178bn in cash on its balance sheet, having generated a staggering $30bn in free cash flow during the quarter.

At Neptune, we have been long-term believers in the Apple story, and continue to hold the stock in a number of our portfolios based on the company’s long-term growth prospects. This is predicated on our belief that Apple has proved thus far that it can — unusually for a consumer electronics company — maintain high margins for a sustained period of time, even as adoption of new technology slows down and competitors produce similar-specification products.


News and expert analysis straight to your inbox

Sign up


    Leave a comment