|Bid||20.10 x 0|
|Ask||20.61 x 0|
|Day's Range||20.49 - 20.49|
|52 Week Range||18.59 - 28.12|
|Beta (3Y Monthly)||0.93|
|PE Ratio (TTM)||31.23|
|Forward Dividend & Yield||0.38 (1.89%)|
|1y Target Est||N/A|
Hargreaves Lansdown funds with exposure to Neil Woodford’s collapsed investment vehicle have bled a net £439m over the past four months, sparking fears that the liquidity crisis that engulfed the former stockpicker could spread to a new cohort of investors. Hargreaves, the UK’s largest fund supermarket, operates an £8bn own-brand multimanager portfolio range that invests in the Woodford Equity Income fund, which is suspended due to problems stemming from its exposure to hard-to-sell assets. A recent run of investor redemptions from the Hargreaves range is fuelling concern that as the multimanager reduces its position in other funds to pay the withdrawals, the Woodford fund will make up a larger proportion of the portfolios, endangering remaining investors.
Glen, a 38-year-old youth worker from north London, is one of nearly 300,000 Hargreaves Lansdown customers who invested in Neil Woodford’s Equity Income Fund. “The funny thing is, I don’t really blame Neil Woodford for this. This attitude may come as a surprise to those following the scandal, but it is not uncommon among private investors.
on behalf of angry investors who stand to lose money as a result of the demise of Woodford Investment Management. , a specialist in group compensation cases, said it was assessing legal recourse for losses as a result of Hargreaves’ support for Britain’s best-known stock picker Neil Woodford after being approached by investors. Hargreaves has long been the UK’s most popular online broker but was dragged into the downfall of the celebrity fund manager for continuing to back him in its “best buy” list and own-brand funds despite increasing concerns over his investments.
At the centre of the bar was Neil Woodford, the UK’s best-known stockpicker. It was May 2014 and the pair had recently left their longtime employer, Invesco Perpetual, to set up on their own. The launch of Woodford Investment Management was a resounding success.
You can no longer find the article online, but I have kept a hard copy of the Hargreaves Lansdown customer magazine, the Investment Times, from June of this year. Seeking income and capital growth, he was, in Mr Dampier’s words, “a classic equity income investor”.
Hargreaves had championed funds from Neil Woodford, the UK’s best-known money manager, who on Tuesday announced he was closing his company after being fired from his own flagship fund. The role of Hargreaves, which promoted Woodford funds on its best buy list and attracted £1.6bn of assets for Mr Woodford, is now being examined by the Financial Conduct Authority.
After being fired as manager of the flagship Woodford Equity Income Fund on Monday by its administrator, the ex-star manager quit the two remaining funds that bear his name. The questions raised by the episode over the business models of so-called fund management supermarkets will not end along with this fund manager’s career. In particular, Hargreaves Lansdown, an investment platform that promoted Mr Woodford’s fund even as its performance slipped, must explain the reasoning behind its recommendation.
“The increase in flows allows us to negotiate with the fund groups.” Hargreaves then kept WEIF on its ‘best buy’ list right up until suspension, even though it had growing concerns over its illiquid small company holdings.
Hargreaves Lansdown pulled in 35,000 new punters in the three months to the end of September, the first complete quarter since Mr Woodford’s flagship fund was gated in early June. Net new business was £1.7bn, or £400m more than the same quarter a year ago — although £900m of these inflows came from direct back book transfers from JP Morgan and Baillie Gifford. Hargreaves acknowledged there had been an impact on new business in the quarter — but not from the fallout of the Woodford saga.
Analysts at broker Shore Capital said: “It would not appear that disgruntled clients have moved other investments off the HL platform” — a loyalty that their counterparts at Panmure found all the more remarkable, given “obvious market and political uncertainty, as well as a period of hostile press coverage”. With that offering now including a cash deposit service, cautious savers contributed £300m of the £1.7bn net inflow in the quarter — helping Hargreaves to hit consensus estimates for assets under administration even as stock market sentiment weakened. First-quarter net revenue of £128m is already 6 per cent ahead of 2018’s, suggesting no hit to margins from the higher cash holdings, and represents 24 per cent of the full-year forecast, even in a traditionally quieter period.
Hargreaves Lansdown came under fire from small investors over its links to embattled stock picker Neil Woodford despite reporting a rise in new clients in the third quarter and assets under administration of more than £100bn. The UK’s largest fund supermarket said in a trading update on Thursday that it had added 35,000 new clients in the three months to the end of September, up from 29,000 in the same quarter a year earlier, taking the total to 1.26m. to Mr Woodford, whose flagship Woodford Equity Income fund put a freeze on withdrawals in June.
UK online wealth manager Nutmeg has revealed widening losses in 2018 as it increased its spending on staff and technology to attract new customers. Nutmeg has previously been reluctant to put a date on when it will start making money but chief executive Martin Stead has told the Financial Times this should happen within three years. Will Nutmeg’s crowdfunding plans cut the mustard?