View more on these topics

Hargreaves Lansdown removes First State funds from Wealth 150

Hargreaves Lansdown has removed three First State funds from its Wealth 150 list of favourite funds.

The First State Greater China growth, First State Indian subcontinent and First State Latin America have been removed, having announced earlier this year that they will be soft closed in 2012.

Meera Patel, senior analyst at Hargreaves Lansdown, says the funds have seen strong inflows during the past couple of years, thanks to the management team’s “excellent long-term track record”.

She says: “First State now believes these funds are at an optimum size and if they grew significantly bigger, future performance could potentially be compromised.

“We view this as a positive move for existing investors in these funds. Smaller funds will generally be more nimble, allowing the managers to react quickly to market developments and take advantage of opportunities when they arise.”

Patel adds: “It also allows these funds to continue investing in smaller companies, which have the potential for superior growth although they are higher risk.

“If these funds continue to see large inflows of capital, it could make them more difficult to manage.”

The analyst says investors do not need to take any action if the funds continue to meet their objectives and can continue regular monthly investing through its Vantage platform.

She says: “The long-term performance of First State’s Asia and emerging markets team has been strong, and we believe the restriction of inflows into these funds should help the managers outperform in future.”

The First State Asia Pacific Leaders and First State Global Emerging Market Leaders funds remain on the Wealth 150, as do the First State Global Listed Infrastructure and First State Global Resources funds.



Regulation roundup 2011: FSA struggles as RDR approaches

The FSA has had to contend with a year of investment scandals as it tries to lay the foundations for the RDR. During 2011, the RDR has moved beyond a debate about the higher qualification requirements to look at the practical concerns about RDR implementation. A turning point in the debate came in July when […]

Standard Life Investments chairman steps down

Standard Life Investments chairman Colin Buchan is to step down from 2012 and will be replaced by non-executive director John Paynter. Buchan was appointed chairman in 2008 and has been a director of Standard Life Investments since 2002; he will remain as a director and continue to chair the investment committee. Paynter has been a […]

Cheviot: Record overnight deposit rates reflect missing confidence

Record high overnight deposits reported by the European Central Bank are no surprise given the serious lack of confidence in the banking sector, says Cheviot Asset Management’s David Miller. The ECB has reported two consecutive days of record high overnight deposits made by European banks, as the figure climbed to £377 billion on Tuesday. The record of £320 billion, recorded […]

Italy borrowing costs drop slightly

A fall in short-term borrowing costs for Italy was offset by elevated long-term debt costs, which dipped slightly below the 7 per cent mark. Yields on 10-year debt dropped to 6.98 per cent, below the crucial 7 per cent level, which usually signals an impending bailout. In November, 10-year debt reached yields of 7.56 per […]

Risk profiling cover.jpg

Your Index-Linked Gilt Fund may not be as risky as you think

Index-linked gilts (also known as inflation-linked) can play an important role within an investor’s portfolio,and are a distinct asset class to conventional gilts. While index-linked gilts have a higher duration compared to their conventional counterparts, this duration figure is misleading as inflation-linked bonds do not tend to move in line with their conventional counterparts. Key […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. The title of this article appears to be a bit misleading, as HL aren’t saying that investors should withdraw from any of these funds, merely that there’ll soon be no scope for committing any new monies to them, other than ongoing regular contributions. On that basis, they can hardly remain on HL’s list of favoured/recommended funds, can they?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm