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Hargreaves reveals examples of fund discounts

Hargreaves Lansdown has revealed the first funds on which it has negotiated cheaper fees as part of its pricing shakeup.

Fund managers Artemis, Invesco Perpetual and Marlborough Fund Managers have all offered funds at cheaper prices to Hargreaves.

The discount broker today revealed it had received an average discount on the funds, which feature on its Wealth 150 recommended fund list, of 11 basis points.

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The firm said the funds on the Wealth 150, which currently consists of 90 funds, will be available at an average annual management charge (AMC) of 0.65 per cent, compared to the average AMC of 0.76 per cent if an investor bought the standard clean fee share class.

William Littlewood’s Artemis Strategic Assets fund will now be available for 0.66 per cent on Hargreaves Lansdown, compared to the standard clean fee AMC of 0.75 per cent.

Invesco Perpetual’s Tactical Bond fund, run by bond giants Paul Causer and Paul Read, will be available for 0.45 per cent, down from 0.62 per cent on its clean fee share class.

And Giles Hargreave’s Marlborough Multi Cap Income fund is available on a 15 basis point discount, with Hargreaves customers set to pay an AMC of 0.6 per cent compared to 0.75 per cent on the normal clean fee share class.

The discount broker has also arranged for a lower price on the L&G FTSE 100 Index tracker fund, although it is not on the Wealth 150 list, and that will cost its clients just 0.06 per cent.

The company has also labelled 27 funds from its preferred funds list as Wealth 150+ funds, which will have an average AMC of 0.54 per cent compared to a standard market AMC of 0.70 per cent for the same funds.

It said the best price it had negotiated on an active equity fund was an AMC of 0.3 per cent, 0.15 per cent for an active corporate bond fund and 0.06 per cent on a passive fund.