View the article online at http://citywire.co.uk/money/article/a753168
Hargreaves Lansdown secures Woodford for 0.6%
Online stockbroker Hargreaves Lansdown has secured an additional discount on star manager Neil Woodford's new fund.
Hargreaves has added the Woodford Equity Income fund to its Wealth 150+ list of favoured funds after persuading Woodford to knock an extra 0.05% off the 0.65% discounted share class for big platforms. The fund will carry a 0.75% charge on smaller platforms and through financial advisers, while direct investors will be subject to a 1% AMC and a minimum investment of £150,000.
Hargreaves Lansdown investors will invest in the 0.65% share class and receive an additional 0.05% loyalty bonus paid annually.
Mark Dampier, Hargreaves Lansdown head of research, said: 'Investment returns are of course a function of performance and cost. Neil Woodford has one of the best track records when it comes to adding value for investors. Moreover Hargreaves Lansdown has significantly reduced the cost of investing in his new fund by negotiating hard on behalf of Vantage investors, and then passing those savings on.'
However, platform expert Mark Polson cautioned that the lower price Hargreaves had secured was serving mainly to offset its platform charge of 0.45% for an investors first £250,000, which is higher than that of a number of its rivals.
'If you're a Woodford-only investor and "diversification" isn't something you like, then it's all good,' he said. 'The second you start moving away from those funds with best-friend deals, life starts to get a bit more nuanced.'
The offer period for the new fund will open on 2 June. Hargreaves said it would need to receive instructions by 5pm on 18 June if savers wanted to invest in the fund at launch.
Woodford has set up his own firm and fund after calling time on a 25-year career at Invesco Perpetual. Watch him talk about his new venture here:
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by James Carthew on Dec 22, 2014 at 10:50