interactive investor launches new 'Super 60' funds and trusts list while Hargreaves Lansdown trims its fund recommendations

9 January 2019

interactive investor  has launched the ‘Super 60’, a high-conviction list of investment ideas, including open-ended funds, investment trusts and ETFs.

interactive investor (Moneywise's parent company) has launched the ‘Super 60’, a high-conviction list of investment ideas, including open-ended funds, investment trusts and ETFs.

The Super 60 funds were selected from our sister publication, Money Observer’s Rated Fund universe.

Moira O’Neill, head of personal finance at interactive investor and former editor of Moneywise, says: “The list is designed to offer a filtered selection appropriate for all investors, whether they are new to investing or experienced.

"Our objective is to provide a menu of high-quality investment choices across a broad variety of markets and investment types."

Richard Wilson, chief executive of interactive investor, also underlined that the choice of funds and trusts was decided independently and not as a result of any commercial considerations.

He notes: “Super 60 is driven by unbiased, in-house research, not commercial relationships and this is absolutely paramount to us.

“Super 60 is the result of rigorous, intensive, independent research from interactive investor’s experts and we are proud to launch it.”

interactive investor charges a flat fee for use of its investment platform of £22.50 per quarter.

interactive investor's Methodology

Each fund or trust in the Super 60 is decided on the basis of its own merit, not driven by any special discounts or commercial considerations.

Fund and trusts were chosen in a seven stage process, overseen by interactive investor’s investment committee.

Performance of funds and trusts that came out of the screening were then analysed and risk profiled, alongside other qualitative research to support the recommendations.

The remaining funds and trusts were then discussed among interactive investor’s analysts and investment experts, after which approved funds and trusts were then included within the Super 60.

The Super 60 will be monitored on an ongoing basis for performance, potential red flags and any major fund manager changes. Investment trusts that consistently trade at a premium will be flagged to ii customers.

Hargreaves Lansdown launches Wealth 50 fund idea list

Meanwhile, online broker Hargreaves Lansdown has launched a new buy list of investment fund ideas.

It will replace Hargreaves Lansdown’s previous Wealth 150 and Wealth 150+ lists, under the name 'Wealth 50'. The new Wealth 50 currently has 63 funds at launch, but the firm says it will be cut down to 50 in due course.

The Wealth 50 will be composed of active and passive open-ended funds (OEICs).   

The firm says that behind the move to create a smaller list was feedback from customers, in the form of surveys, focus groups and one-to-one interviews. It found that customers wanted a simpler and a more focused list.

On average investors will see a 30% reduction in fund charges for funds on the Wealth 50, due to Hargreaves Lansdown negotiating lower fees with fund managers.

The cheapest index tracker among the Wealth 50 is Legal & General UK Index, with an annual fund charge of 0.04%, while the lowest cost active equity fund on the list, Aviva UK Equity Income fund, charges 0.49%. The Morgan Stanley Sterling Corporate Bond is the cheapest active bond fund, with a fee of 0.22%.

Hargreaves Lansdown also has a platform charge of 0.45% for clients, which will be applied alongside the fund charge for its customers.

This article first appeared on our sister website Money Observer

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