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Hargreaves Lansdown's Wealth 50: the ins, outs and discounts

We highlight the funds cut from the streamlined buy list, new entries and where the broker has, and hasn't, secured further discounts

Online stockbroker Hargreaves Lansdown has slashed the number of funds on its Wealth 150 buy list, rebranding the selection as Wealth 50, and squeezed further discounts from a number of funds that survived the cull.

As part of the overhaul, first reported by Citywire, the roster of 85 funds on the Wealth 150 has been cut to 61, which all now feature discounts to their annual charges negotiated by Hargreaves Lansdown.

Here we run through the new, streamlined list, flagging the new entries, highlighted in bold where Hargreaves has secured further discounts to fund annual charges, and detailing the funds that have been cut.

Click through the slides to see the new selection.

To see all the slides on the same page, click here.

 

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Online stockbroker Hargreaves Lansdown has slashed the number of funds on its Wealth 150 buy list, rebranding the selection as Wealth 50, and squeezed further discounts from a number of funds that survived the cull.

As part of the overhaul, first reported by Citywire, the roster of 85 funds on the Wealth 150 has been cut to 61, which all now feature discounts to their annual charges negotiated by Hargreaves Lansdown.

Here we run through the new, streamlined list, flagging the new entries, highlighted in bold where Hargreaves has secured further discounts to fund annual charges, and detailing the funds that have been cut.

Click through the slides to see the new selection.

To see all the slides on the same page, click here.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Global

Global Standard HL HL previous Saving
NEW Artemis Global Income 0.8 0.6 0.71 25%
Jupiter Global Value Equity 0.95 0.53 0.53 44%
Lindsell Train Global Equity 0.72 0.52 0.54 28%
Newton Global Income 0.79 0.55 0.55 30%
Rathbone Global Opportunities 0.79 0.53 0.69 33%
Legal & General International Index Trust 0.13 0.08 0.08 38%

Cut: First State Global Infrastructure, Standard Life Investments Global Smaller Companies.

Fundsmith Equity's continued exclusion from the list has vied with the survival of Neil Woodford's funds in generating the most headlines from Hargreaves Lansdown's revamp.

Hargreaves' justification for excluding Terry Smith's fund, that his charges are too expensive while the cheaper Nick Train, manager of the Lindsell Train Global Equity fund, does just as good a job, has drawn an angry response from Smith.

‘Hargreaves Lansdown's recommended funds continue to be chosen mainly for fund managers' willingness to comply with a charging structure which enables Hargreaves Lansdown to maximise its own profitability, and not because they perform well for investors,' he told The Times.

Artemis Global Income is one of three new inclusions to the revamped list, with a larger discount secured in the process, while Rathbone Global Opportunities has also cut its charges.

Lindsell Train Global Equity's charge on Hargreaves has also come down marginally from 0.54% to 0.52%, although that is a function of the standard charge also dropping, from 0.74% to 0.72%, according to Hargreaves' figures.

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UK Growth, Small and Mid-Caps

UK Growth Standard HL HL previous Saving
AXA WF Framlington UK 0.76 0.58 0.58 24%
LF Lindsell Train UK Equity 0.7 0.51 0.51 27%
LF Woodford Equity Income 0.75 0.5 0.6 33%
M&G Recovery 0.91 0.6 0.81 34%
Majedie UK Equity 0.77 0.62 0.77 19%
NEW Unicorn Outstanding British Companies 0.84 0.49 0.84 42%
Legal & General UK Index 0.1 0.04 0.04 60%
UK Small & Medium-Sized Companies        
Franklin UK Mid Cap 0.82 0.62 0.62 24%
Marlborough Nano-Cap Growth 0.81 0.66 0.66 19%
Marlborough UK Micro-Cap Growth 0.79 0.7 0.74 11%
HSBC FTSE 250 Index 0.18 0.09 0.09 50%

Cut: Fidelity Special Situations, Franklin UK Managers' Focus, Legal & General UK 100, Liontrust Special Situations, Marlborough Special Situations, Merian UK Alpha, Merian UK Mid Cap, Merian UK Smaller Companies, Standard Life Inv UK Equity Unconstrained.

Neil Woodford's flagship fund may have survived the Hargreaves cull, but many other UK heayweights haven't, as the online stockbroker saved its sharpest knife for its selection of domestic funds.

Richard Buxton's £1.9 billion Merian UK Alpha, Alex Wright's £2.9 billion Fidelity Special Situations and the £4 billion Liontrust Special Situations fund have all been left on the cutting room floor.

Unicorn Outstanding British Companies has entered the list, helped by the granting of a substantial discount to the annual charge, likely to result in a swelling of its current £64 million size.

Woodford has also been squeezed for a further discount, with the manager trimming his charge from the 0.6% he previously offered to Hargreaves to 0.5%.

So, too, has M&G, whose Recovery fund's inclusion on the list once prompted the same sort of questions as Hargreaves is now facing over Woodford.

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Bonds

Corporate and Government Bonds Standard HL HL previous Saving
Fidelity MoneyBuilder Income 0.56 0.36 0.46 36%
Morgan Stanley Sterling Corporate Bond 0.37 0.22 0.22 41%
Royal London Corporate Bond 0.53 0.37 0.37 30%
iShares Corporate Bond Index 0.16 0.11 0.11 31%
Legal & General All Stocks Gilt Index Trust 0.15 0.1 0.1 33%
Strategic Bond Bond        
Artemis Strategic Bond 0.57 0.46 0.48 19%
Invesco Tactical Bond 0.75 0.56 0.63 25%
Jupiter Strategic Bond 0.73 0.66 0.73 10%
M&G Global Macro Bond 0.81 0.5 0.56 38%

Cut: Invesco Perpetual Corporate Bond, Legal & General All Stocks Index Linked Gilt, Legal & General Global Inflation Linked Bond, M&G Optimal Income, M&G Strategic Corporate Bond, M&G UK Inflation Linked Corporate Bond.

Along with UK equity funds, bond funds were the biggest casualties of Hargreaves' culling of the Wealth 150.

Seven have been given the boot, including the UK's largest fund, the £22 billion M&G Optimal Income. With the fund group's Strategic Corporate Bond and UK Inflation Linked Corporate Bond funds also gone, M&G Global Macro Bond remains its only fixed income offering in the list.

Strategic bond funds have proved a fertile ground for discount negotiations, with all four that remain having granted Hargreaves a lower charge.

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Income

UK Equity Income Standard HL HL previous Saving
Artemis Income 0.79 0.59 0.7 25%
NEW Aviva UK Equity Income 0.81 0.49 0.81 40%
Jupiter Income 0.94 0.6 0.6 36%
Marlborough Multi Cap Income 0.79 0.6 0.64 24%
Threadneedle UK Equity Income 0.83 0.6 0.68 28%
Troy Trojan Income 1.02 0.62 0.77 39%
High Income        
Artemis High Income 0.69 0.555 0.6 20%
EdenTree Higher Income 0.78 0.35 0.35 55%
LF Woodford Income Focus 0.75 0.5 0.6 33%
Royal London Sterling Extra Yield Bond 0.83 0.4 0.4 52%

Cut: JO Hambro UK Equity Income, Rathbone Income.

Aviva Investors has gained a foothold on the Wealth 50 with the entry of its Aviva UK Equity Income fund, helped by the granting of a substantial discount to its 0.81% annual charge. 

Only Jupiter Income has held out against further discounts among the UK Equity Income funds that have remained, with the rest of the UK's dividend hunters on the list proving more willing.

The £3.4 billion JO Hambro UK Equity Income and £1.2 billion Rathbone Income funds are meanwhile heavyweight casualties of Hargreaves' streamlining.

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Europe, Japan and North America

Europe Standard HL HL previous Saving
Baring Europe Select 0.8 0.7 0.7 13%
FP Crux European Special Situations 0.89 0.75 0.75 16%
Threadneedle Europe Select 0.83 0.68 0.73 18%
TM Sanditon European 0.89 0.74 0.74 17%
Legal & General European Index 0.12 0.07 0.09 42%
Japan        
Man GLG Japan CoreAlpha 0.9 0.8 0.8 11%
Schroder Tokyo 0.91 0.66 0.66 27%
iShares Japan Equity Index 0.16 0.11 0.11 31%
North America        
Legg Mason IF Royce US Smaller Companies 0.98 0.65 0.8 34%
Legal & General US Index 0.1 0.06 0.06 40%

Cut: JO Hambro Continental European, JO Hambro Japan, Jupiter European.

No manager has matched Citywire A-rated Alexander Darwall in the Investment Association's Europe ex-UK sector over the last decade, but has not saved his Jupiter European fund from the chop.

Joining it on the cutting room floor is JO Hambro Continental European, one of a trio of JO Hambro funds to face the chop, leaving the fund group without a presence on the Wealth 50. JO Hambro Japan and UK Equity Income have also been cut.

Legal & General European Index stands out as the only tracker fund from which Hargreaves has been able to secure a further discount, bringing the annual charge down to 0.07%.

An already slim North America list has not been cut further, while a further discount has been secured on the Legg Mason IF Royce US Smaller Companies fund.

No such luck for Hargreaves, though, with the three Japan funds on the list, which haven't budged further on costs.

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Asia and Emerging Markets

Asia Standard HL HL previous Saving
Aberdeen Asia Pacific Equity 1.2 0.65 0.935 46%
First State Asia Focus 0.9 0.75 0.89 17%
Jupiter Asian Income 0.98 0.69 0.69 30%
Jupiter India 1.07 0.69 0.69 36%
iShares Pacific ex Japan Equity Index 0.18 0.13 0.13 28%
Emerging Markets        
Aberdeen Latin American Equity 1.19 0.65 0.79 45%
JPM Emerging Markets 1.15 0.65 0.65 43%
Schroder Small Cap Discovery 0.97 0.71 0.71 27%
iShares Emerging Markets Equity Index 0.25 0.23 0.23 8%

Cut: Stewart Investors Asia Pacific Leaders

Veteran Asia fund manager Angus Tulloch stepped down the Stewart Investors Asia Pacific Leaders fund in the summer of 2016, and the fund has received the chop in Hargreaves Lansdown's revamp of its fund buy list.

The fund, now run by David Gait and Sashi Reddy, has delivered mid-ranking performance in the last three years, though performance has picked up over the last 12 months.

Hargreaves has, meanwhile, reaped some success in its negotiations with Aberdeen Standard Investments, with a sizeable chunk taken out of Aberdeen Asia Pacific Equity's annual charge, and a further trim to Aberdeen Latin American Equity's costs.

So, too, with First State Asia Focus, a strong performer over the last three years.

Jupiter India's survival is of note. Manager Avinash Vazirani endured a torrid 2018, and it is the only country-specific Asian fund to make the Wealth 50.

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Mixed Investment and Total Return

Mixed Investment Standard HL HL previous Saving
Baillie Gifford Managed 0.43 0.28 0.35 35%
Schroder Managed Balanced 0.6 0.33 0.4 45%
Total Return        
Newton Real Return 0.8 0.6 0.7 25%
Pyrford Global Total Return 0.81 0.55 0.59 32%
Troy Trojan 1.02 0.62 0.77 39%

Cut: Odey Opus

More discounts all round in these two sectors, and an unsurprising exit. Hedge fund manager Crispin Odey's Odey Opus had always seemed an unusual inclusion on a mainstream fund buy list like the Wealth 150, and it hasn't survived the transition to the Wealth 50.

While the Opus fund may not deliver quite such a rollercoaster ride as some of the idiosyncratic manager's higher octane offerings, it sits uneasily with the more conservative stylings of the total return funds that have remained.

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