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

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 Dispelling the sustainable investing myths

Dispelling the sustainable investing myths

There's a bit of a buzz around sustainable investing at the moment. We speak to three wealth managers to find out what they think.

Play Inside ETFs: positioning for the Fed rate rise

Inside ETFs: positioning for the Fed rate rise

Natalie Fast discusses how investors are using ETFs to position for a rate rise with guests Irene Bauer from Twenty20  Investments and Markit's Simon Colvin.

Play Wealth Manager Retreat: video highlights

Wealth Manager Retreat: video highlights

The UK's leading wealth management talent gathered at our annual event at the Grove celebrate the best in private client portfolio management.

Wealth Manager on Twitter