HL: Too few fund managers are worth their salt

The head of research for Bristol-based Hargreaves Lansdown said it was vital that investors did proper investigation before deciding to invest their hard-earned savings.

He said: “Only a small percentage of active managers have demonstrated a consistent ability to add value to investors’ funds. Our research process identifies those managers and, through the Wealth 150, we have been able to help our clients benefit from these managers’ expertise.”

His comments came after the firm announced its revamped Wealth 150+ and unveiled the full list of its unbundled funds, available on its Vantage Platform, earlier this month.

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The Wealth 150 was first launched in November 2003 in an effort to help Hargreaves Lansdown clients choose the best funds for their portfolios.

According to Mr Dampier, the Wealth 150 selections have outperformed across most major sectors with the most striking successes in the UK All Companies and UK Smaller Companies sectors.

He said the revised list of funds aims to help investors choose funds that will outperform their peers over the long term, as the team of advisers only selects funds based on their prospective, total return performance.

Analyst View

After the FTSE 100-listed advisory firm unveiled its Wealth 150+ list of funds, Barclays analysts Daniel Garrod and Toni Dang issued a statement citing Hargreaves Lansdown’s “reassuring” announcement about the methodology behind its fund choices. Barclays reiterated its reasons why investors should be overweight in Hargreaves Lansdown stock.

In their note, the analysts wrote: “Overall, we believe it is reassuring that the names included on the Wealth 150+ are all good quality.”.