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Jupiter & Henderson Hargreaves 150+ exclusion cheers brokers

by Dylan Lobo on Mar 03, 2014 at 09:58

Jupiter & Henderson Hargreaves 150+ exclusion cheers brokers

Analysts are pleased to note listed managers have marginal representation on Hargreaves Lansdown’s discounted Wealth 150+ list.

In an eagerly anticipated announcement, Hargreaves revealed the 27 funds which it had struck ‘super clean' deals with over the weekend.

The announcement followed months of haggling, with the combined average management fee on the 150+ funds standing at 0.54%.

Shore Capital analyst Owen Jones is happy listed fund firms are not widely on 150+, given the bear case against stocks recently has been one of material margin attrition owing to squeezed margins.

Of the listed managers, Aberdeen is represented through its Latin American fund, which offers a 40bps discount on its annual charge, while Rathbones is included with its Income fund, managed by Carl Stick (pictured), available with a 26bps discount.

Elsewhere, Schroders has two funds on the platform, Tokyo and Managed Balanced , with discounts of 25bps and 20bps, respectively.

The fact Jupiter and Henderson are not on the list is a positive for Jones. ‘Jupiter set out its stall fairly early on in the process and said that it didn’t see value in fund management houses participating in a ‘race to the bottom’ with respect to fees,’ Jones said.

‘We are comforted by the absence, at least to a material extent, of the listed UK asset managers.'

He added: 'A gentle meander to the bottom may occur in the long run, predominantly as books of business evolve with time, but we do not see it happening any time soon, as the publication of such a list by Hargreaves Lansdown demonstrates.

'We therefore maintain our buy recommendation on the shares of Aberdeen and Jupiter.’

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2 comments so far. Why not have your say?

ScepticEclectic

Mar 03, 2014 at 10:20

"The best funds at the best prices..." now sounds like "The lower end of the Conference League at giveaway prices...".

Time to sell my Hargreaves shares - purely for personal reasons. Nothing connected to this.

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Anonymous 1 needed this 'off the record'

Mar 03, 2014 at 11:02

Sorry but even with these super clean charges HL is far from inexpensive. Anyone with £25,000 or more could do better - possibly with even less. The platform charge itself is just too great. No amount of messing around with a few fund charges will hide that.

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