Hargreaves Lansdown Group  

HL claims funds deliver 'value' despite poor performance

As part of the regulator’s asset management review, fund houses are now required to carry out an annual assessment of whether the firm provides value for their clients.

The assessment criteria set out by the FCA include performance, general costs, economies of scale, comparable market rates, comparable services and share classes.

At what point asset managers are required to publish their own reports depends on their financial reporting dates, but most will be publishing their first assessment review throughout 2020.

Emma Wall, head of investment analysis at Hargreaves Lansdown, said the firm used direct communications with unit holders to talk about portfolio constituents.

She said: “The value for money report is an assessment based on seven factors including performance – where we have offered value over the long-term – and also quality of service and economies of scale, where we think the Hargreaves funds also add particular value. 

“The Hargreaves Multi-Manager range of funds all have good long term track records.”

Hargreaves also pointed out no fund had more than 3 per cent holdings in the Woodford Equity Income fund as of today.


What do you think about the issues raised by this story? Email us on fa.letters@ft.com to let us know.