Hargreaves Lansdown launches Wealth 50 fund idea list

Hargreaves Lansdown says that behind the move to create a smaller list was feedback from customers.

Funds and Investment Trusts January 9, 2019 by Tom Bailey

Online broker Hargreaves Lansdown has launched a new buy list of investment fund ideas.

It will replace Hargreaves Lansdown’s previous Wealth 150 and Wealth 150+ lists, under the name Wealth 50. The new Wealth 50 will consist of 60 funds at launch, but the firm says it will be cut down to 50 in due course. The Wealth 50 will be composed of both active and passive open-ended funds.   

Hargreaves is the second major broker to have refined its list this week, with interactive investor, our parent company, launching the ‘Super 60’, which includes open-ended funds, investment trusts and ETFs.  

Hargreaves Lansdown says that behind the move to create a smaller list was feedback from customers, in the form of surveys, focus groups and one-to-one interviews. It found that customers wanted a simpler and a more focused list.

On average investors will see a 30% reduction in fund charges for funds on the Wealth 50, due to Hargreaves Lansdown negotiating lower fees with fund managers.

The cheapest index tracker among the Wealth 50 is Legal & General UK Index, with an annual fund charge of 0.04%, while the lowest cost active equity fund on the list, Aviva UK Equity Income fund, charges 0.49%. The Morgan Stanley Sterling Corporate Bond is the cheapest active bond fund, with a fee of 0.22%.

Hargreaves Lansdown also has a platform charge of 0.45% for clients, which will be applied alongside the fund charge for its customers.

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