Hargreaves UK income fund falls 7% in first year

'It wasn't the outcome we hoped for'

Tom Eckett
clock • 1 min read

Despite its launch being labelled a challenge to the UK Equity Income sector when HL Select UK Income Shares came to market on 2 March, the £205m fund has significantly underperformed in its first year.

Managed by Steve Clayton, the fund has lost 7.2% since launch versus the average return of 2.4% in the IA UK Equity Income sector. The poor performance was largely driven by the fund's investment in Provident Financial, whose woes have been well documented over the past nine months. Shares in the subprime lender plummeted 70% in July last year after it issued its second profit warning in three months, however the stock bounced 70% on 27 February after the firm settled a rights issue with the Financial Conduct Authority (FCA). "It was not the outcome we hoped for when we launched th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on UK

UK businesses to pay four times more for electricity than in 2020
UK

UK businesses to pay four times more for electricity than in 2020

Calls for Covid-style support for energy bills

clock 25 August 2022 • 1 min read
UK

IA Global sector enjoys record £934m sales in April

Reduced UK outflows

Sam Shaw
clock 06 June 2019 • 2 min read
UK

Dan Kemp: What UK investors can learn from the Champions League

Set new goals

Dan Kemp
clock 31 May 2019 • 3 min read