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The Wealth 50 FAQs

Evolving from the Wealth 150

  • Why has the list changed?

    We created the Wealth 150 to help people choose from the bewildering number of funds available.

    Over the years, we’ve refined our process and are increasingly picky when we choose funds. As a result the Wealth 150 has progressively shrunk in size.

    At the same time clients told us there were still too many funds to choose from. So we’ve reviewed every fund on the list to make it tighter, more focused and easier to use. We’ve renamed it the Wealth 50.

  • How does the change impact me?

    Some funds which were on the Wealth 150 have just missed out on the new list. We still think they’re very good funds, run by very good fund managers.

    If you hold one of these funds, we don’t think you should sell just because it hasn’t made the cut, if it still meets your objectives.

    Why some funds have just missed out

    We also renegotiated with the fund managers who made our shortlist to get even bigger discounts on their annual fund charges, saving you money.

  • Do I need to do anything to benefit from the lower fund charges?

    Most of the new lower annual fund charges will take effect automatically and you won’t need to do anything to benefit.

    For a few funds, you’ll need to convert to a new share class to benefit from lower charges. If this is the case with a fund you hold, we’ll get in touch to let you know what you need to do.

  • Will I still get discounts on funds that didn’t make the list?

    Yes. You’ll still get the same HL negotiated discounts as before on these funds.

  • What should I do if I hold a fund that’s no longer on the Wealth 50?

    Some funds which were on the Wealth 150 have just missed out on the new list. We still think they’re very good funds, run by very good fund managers.

    If you hold one of these funds, we don’t think you should sell just because it hasn’t made the cut, if it still meets your objectives.

    Why some funds have just missed out

  • How will I know if a fund I hold has come off the Wealth 50?

    We’ll contact you. If you have online access, we’ll get in touch using our secure messaging service.

    When we make changes to the Wealth 50 in the future, whether adding or removing a fund, we’ll update you by email if you hold one of the affected funds.

  • Which funds are new?

    We have added three new funds to the Wealth 50. These are:

    • Artemis Global Income
    • Aviva UK Equity Income
    • Unicorn Outstanding British Companies
  • Which funds have been removed?

    The funds listed below were all on the Wealth 150, but didn’t make the Wealth 50.

    Artemis Strategic Assets BlackRock Gold & General
    CF Odey Opus Fidelity Special Situations
    First State Global Listed Infrastructure Franklin UK Managers' Focus
    Invesco Corporate Bond JO Hambro Continental European
    JO Hambro Japan JO Hambro UK Equity Income
    Jupiter European Legal & General All Stocks Index Linked Gilt
    Legal & General Global Inflation Lnk Bond Indx Legal & General UK 100 Index
    Liontrust Special Situations M&G Optimal Income
    M&G Strategic Corporate Bond M&G UK Inflation Linked Corporate Bond
    Marlborough Special Situations Merian UK Alpha
    Merian UK Mid Cap Merian UK Smaller Companies
    Rathbone Income Standard Life Inv Global Smaller Companies
    Standard Life Inv UK Equity Unconstrained Standard Life UK Smaller Companies
    Stewart Investors Asia Pacific Leaders
    Artemis Strategic Assets
    BlackRock Gold & General
    CF Odey Opus
    Fidelity Special Situations
    First State Global Listed Infrastructure
    Franklin UK Managers' Focus
    Invesco Corporate Bond
    JO Hambro Continential European
    JO Hambro Japan
    JO Hambro UK Equity Income
    Jupiter European
    Legal & General All Stocks Index Linked Gilt
    Legal & General Global Inflation Lnk Bond Indx
    Legal & General UK 100 Index
    Liontrust Special Situations
    M&G Optimal Income
    M&G Strategic Corporate Bond
    M&G UK Inflation Linked Corporate Bond
    Marlborough Special Situations
    Merian UK Alpha
    Merian UK Mid Cap
    Merian UK Smaller Companies
    Rathbone Income
    Standard Life Inv Global Smaller Companies
    Standard Life Inv UK Equity Unconstrained
    Standard Life UK Smaller Companies
    Stewart Investors Asia Pacific Leaders

    Why some funds have just missed out

  • Why have some of the sectors changed?

    We felt some sectors were too broad and some didn't accurately describe where or how they invested. Two funds in the same sector could be invested very differently. As such we made a few small tweaks to make it easier for people to know where a fund invests.

  • What is the SRRI risk rating and why has this been added?

    The synthetic risk and reward indicator (SRRI) is a measure of a fund’s risk based on its historical price volatility. It’s a figure from 1 (low risk) to 7 (high risk). It’s calculated by the fund group, using rules set by the Financial Conduct Authority.

    Investors told us they wanted an easy way to search and filter funds based on their risk. The SRRI is one way to compare funds, but it isn’t the only measure of risk to consider.

  • Why is Woodford still on the list?

    Neil Woodford is one of the most successful, experienced and well-known fund managers in the UK. His long-term track record is exceptional. He’s significantly outperformed the UK stock market and generated impressive income growth along the way. Woodford’s been on the Wealth 150 since we created it in November 2003, and he’s added a lot of value for clients over this time too. After setting up his own fund management business in May 2014, we think he’s well incentivised to perform.

    Over time we’ve collected a huge amount of data and information on Woodford. Since we don’t know how the fund will perform in future we have to rely on the 30 years of fund information we’ve gathered. We believe Woodford’s demonstrated the ability to get the majority of big economic calls right. And he’s proven to have the analytical skills to invest in the right sectors and companies to profit from these views.

    He’s managed money through multiple market cycles, investor fads and unexpected events. He came close to losing his job in the late 1990s when he shunned internet stocks just before the big dotcom bust. Heading into the financial crisis, he stayed clear of banks. When he’s made big calls, he’s usually come out on top.

    Of course, in future he might fail to get these big calls correct, or pick the right stocks, but we feel it’s simply too early to give up.

    Woodford often invests against the herd. His funds can look very different from the wider stock market and the funds of his peers. As a result we expect his funds to go through extended periods of underperformance as well as outperformance. There will be times where his views are out of kilter with the market, and people question his judgment, as they do today. That’s part and parcel of being a contrarian investor. We’re currently seeing one of these periods of underperformance.

    Investments can fall as well as rise in value so you could get back less than you put in. Past performance is not a guide to the future.

    Read our latest research update on Woodford

  • Why isn’t Fundsmith on the list?

    There’s no denying the fund’s performance has been excellent. Inclusion in the Wealth 50, however, is based on more than performance alone. We look at lots of other factors including the manager’s experience, how they’ve performed in a market downturn, and the fund’s charges.

    Terry Smith’s in his ninth year in fund management. That’s still relatively short compared to other successful managers in the global sector. He also hasn’t been tested during a prolonged market fall or when his investment approach is out of favour. We like a track record that includes at least a full market cycle, so we can see how a fund manager reacts when the market and the fund goes through a tough patch.

    In addition, the fund’s annual charge of 0.95% is higher than most other funds in the global sector. When we weigh up Smith’s experience, track record, buy and hold strategy, and the size of the fund (at £15 billion), we think it’s too expensive.

    There are other global funds available, with more experienced managers, whose performance has also been excellent, and whose charges are far lower. So for now the fund isn’t part of our Wealth 50. But we’re keeping it under review and will let you know if our view changes.

    Investments can fall as well as rise in value so you could get back less than you put in. Past performance is not a guide to the future.

    Read our latest research update on Fundsmith

General

  • How often do you update funds on the list?

    We constantly monitor the Wealth 50. When you buy a Wealth 50 fund with HL, you’ll get regular updates from us. If anything changes, you'll be the first to know.

  • How do you decide which funds stay and which ones are removed?

    We spend thousands of hours crunching the numbers and meeting fund managers, to uncover the funds we feel have the most potential in each sector.

    We look for a distinguished career, a fantastic track record, a robust process and great value. We never take payment to put a fund on the list.

    More about how we select funds

  • Do you receive commission for funds to appear?

    No. We never take payment or commission for funds to appear on the Wealth 50. We look at a fund manager's stock picking ability and performance potential.

    More about how we select funds

  • How have your fund selections performed in the past?

    We’re proud of the performance of our list of favorite funds. On average, they’ve beaten their peers and relevant tracker or benchmarks, although there are no guarantees this will continue.

    See Wealth 50 sector performance

  • How do I know which fund to choose within a sector?

    The Wealth 50 is divided into different investment areas, or sectors. In each case there’s a clear explanation of what to expect and why you might consider investing.

    Then for each Wealth 50 fund we’ve given a summary of what it does and how it fits in a portfolio. So if you want to add to your existing investments in a sector, consider funds and managers that use different approaches. This will help you achieve a better mix of investments.

    Finally, for each fund you can see whether it aims to deliver income, growth, or both. So whatever your objectives there’s a selection of funds for you.

Have a question we haven't answered here?

Have a look at our Help section, email us or give us a call on 0117 900 9000