Hargreaves unveils details of Wealth 150+ deals

Execution-only platform giant Hargreaves Lansdown has revealed details of the largest discounts it has secured on the 27 funds that form its ‘Wealth 150+’ list, along with a list of 10 tracker funds available from two managers for a total expense ratio of as little as 0.1 per cent.

In January the firm unveiled its post-cash rebate ban pricing and the headline discounts it had secured across its Wealth 150 range, with the drop compared to the ‘standard’ clean annual management charge across its core range of 90 funds coming in at an average of 0.11 per cent.

However, while these prices may eventually come to represent a new lower market rate - other platforms such as Fidelity have since claimed to have secured improved average terms, for example - Hargreaves said it had secured the best ‘superclean’ deals on 27 funds that would form what it called the ‘Wealth 150+’.

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The average AMC on this list was said to be 0.54 per cent, compared to a standard market AMC of 0.70 per cent for the same funds.

Publishing details of these deals, Hargreaves revealed that the list comprises funds from across 18 managers, with the average lower cost of 0.17 per cent representing a 24 per cent saving for the client, according to the firm.

The largest discount has been secured on the Aberdeen Latin American Equity fund, which carries an AMC on Hargreaves of 0.6 per cent and a TER of 0.85 per cent, in both cases 0.4 per cent lower than the standard market rate, according to the firm.

The full list comprises four funds from Newton, three from Artemis, two each from Schroders, Threadneedle, Marlborough and Lindell, and single funds from Aberdeen, Axa Framlington, Fidelity, First State, GLG, Invesco Perpetual, M&G, Morgan Stanley, Old Mutual, Rathbones, Royal London Asset Management and Standard Life Investments.

Hargreaves has stated that both the Wealth 150 and 150+ are ‘investment-led’ and that fund discounts are only taken as a factor once a fund is shown by its in-house research as being likely to outperform sector peers over the longer-term.

Alongside the Wealth 150 announcements, Hargreaves confirmed its list of 10 funds from Legal and General and Blackrock that have TERs as low as 0.1 per cent, where AMCs range from a low of 0.06 per cent to 0.18 per cent.