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Hargreaves raises £168m for Clayton's equity fund

Hargreaves raises £168m for Clayton's equity fund

by Gavin Lumsden Dec 02, 2016 at 09:47

Hargreaves Lansdown has raised £168 million for its Select UK Shares fund, making it the investment broker's second ever most successful fund launch.

Launched last month, the HL Select UK Shares fund, managed by Steve Clayton, is Hargreaves' first fund to invest directly in the stock market rather than through other funds.

Although the amount raised is dwarfed by the broker's most successful launch, when it attracted £1.6 billion for Neil Woodford's Equity Income fund two years ago, it knocks another of Hargreaves' recent fund launches into third place. The HL Multi-Manager UK Growth fund, the newest in a range of 'fund of funds' the company runs, raised £162 million last year.

Trading in UK Shares began yesterday with the shares starting at a fixed price of £1.

Clayton (pictured) said the company was delighted with the response to the fund, which it described as low cost with an annual management charge of 0.6% set just below the average fund charge of around 0.7%. Investors will have to pay Hargreaves' 0.45% platform fee as well to access the fund.

Hargreaves has also promised to make the fund very transparent with regular investor updates on its holdings and what shares Clayton buys and sells.

‘The new type of investor experience and unique level of fund manager communication available from HL Select UK Shares has clearly struck a chord with investors,' said Clayton, who joined Hargreaves as its head of equity research in 2014.

‘Against a backdrop of poor investor sentiment, the success of this launch shows the confidence investors have in Hargreaves Lansdown’s fund management and highlights the attraction of an expertly managed portfolio of shares, in the convenience of a fund, with a new level of investor information and insight,’ he claimed.

Clayton previously worked as a partner at Mirabaud Securities and as head of UK equities at LV= Asset Management. According to Citywire's records, he has managed only one fund for private investors, a UK equity fund, which he ran for less than a year for Allianz Global Investors in 2003-04.

The new fund sits in the IA UK All Companies sector and has a relatively concentrated portfolio of around 30 stocks. Other direct investing funds are expected to follow. Minimum investment is either £25 a month or a lump sum of £100. 

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Comments  (1)

  • kWIKSAVE: 

    Is there an appetite for more income funds ? Huggins raved about Tesco when its share price was above £4, so am not sure over his short term experience converting to an equity analyst.

    16:57 on 09 February 2017

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