Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Jupiter & Henderson Hargreaves 150+ exclusion cheers brokers

2 Comments
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.’

Meanwhile, Numis believes 150+ will help Hargreaves retain customers in the competitive RDR II pricing world, with investors with DIY inclinations more focused on cost rather than alternatives.

Numis analysts James Hamilton and David McCann, who rate the stock a hold with a £12.30p price target.

‘While Hargreaves Lansdown will undoubtedly lose some customers as a consequence of RDR II we believe the vast majority will remain with the group with substantial new numbers joining the group for a combination of service, security, price and convenience.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter