Hargreaves Lansdown ‘playing catch-up’ with ESG additions to Wealth Shortlist
Responsible investment vehicles now make up five of the 71 fund strong buylist
Hargreaves Lansdown is looking to beef up the number of ESG funds on its Wealth Shortlist following a surge in client demand but has been called out for being late to the party.
The D2C giant announced on Thursday it would be adding the Janus Henderson UK Responsible Income and the Trojan Ethical Income funds to its revamped best buylist, lifting the number of responsible investment funds on its 71-strong shortlist from three to five.
Dominic Rowles, investment analyst at Hargreaves Lansdown, said that investing with ESG considerations in mind is “simply good risk management,” adding that investors should be looking to fill their portfolios with companies which deliver sustainable revenues, profits and dividends.
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Philip Rodrigs also left with a cloud over his head, though the circumstances surrounding his departure were very different from Barnett with River and Mercantile sacking him over an alleged conduct issue, which he has disputed.
His boutique Raynar Portfolio Management opened its doors in February 2020, as the pandemic was ramping up and a year later had amassed £75m in assets under management.
Easier for big name managers to stage comeback at boutiques
Fund buyers reckon it will be easier for Barnett to stage a comeback at a boutique than at one of the fund giants.
GDIM investment manager Tom Sparke says boutiques lend themselves well to more high-profile managers who may conflict with other ‘big names’ in a larger firm.
Lowland Investment Company - Positioned to benefit from UK recovery
Lowland Investment Company (LWI) is riding high among its UK Equity Income peers over 12 months as a market rotation towards more cyclical and domestic UK names looks to vindicate its valuation-aware, multi-cap approach. With the Brexit withdrawal agreement now signed, managers James Henderson and Laura Foll say an increase in takeover activity shows private equity and trade buyers see the value in UK companies, and argue that international investors should also return to a market that has got used to being seen as unloved and underperforming . After almost a decade of adding to its revenue reserve each year, LWI was able to draw on this to increase its FY20 dividend, with sufficient firepower to do so again in FY21 even if UK corporate dividends take longer than anticipated to recover.