Hargreaves Lansdown removes Lindsell Train funds from Wealth 50

The firm said the decision was not investment-based but to "protect the interests of our clients and shareholders [and] the independence of our investment process", due to the fact both Lindsell Train funds invest in Hargreaves Lansdown and the investment "could grow further".

In a Wealth 50 update, chief investment officer Lee Gardhouse said: "As the funds have grown in size, the investment in Hargreaves Lansdown hares has grown too.

"Given the continued popularity of the funds we anticipate the investment in Hargreaves Lansdown shares could grow further and we are therefore removing them from our favourite funds list at the end of the month in line with our procedures.

"We continue to have high conviction in managers James Bullock, Nick Train (pictured) and Michael Lindsell and their ability to outperform in the future. This is not a decision based on a change in our view of the managers or a reflection of their performance."

Gardhouse highlighted that both funds had delivered "significant returns" since they were added to HL's list of favourite funds, with stock selection "the key driver of returns".

Lindsell Train UK Equity was added in September 2013 and Lindsell Train Global Equity was added at launch in March 2011. The former has returned 102.4% compared to 42.8% for the FTSE All-Share over that time while the latter has returned 306.6% compared to 155.9% for the FTSE World index, according to HL.

He added: "If the funds continue to meet your investment objectives we see no reason to sell. The funds remain open for investment.

While Ballie Gifford Managed and Kames Ethical Equity also invest in HL, they both own less than 1% of shares.

Gardhouse added that the Wealth 50 is reviewed on an ongoing basis and the firm will be "considering the UK and Global fund sectors in due course."

 

 

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• Investment
• Hargreaves Lansdown
• Lindsell Train
• Nick Train