Hargreaves Lansdown Share Discussion Threads

[18bells] 08/8/2019 13:00

So the bosses at HL at not cashing their £m bonuses but whats happening about that cash?Is HL willing to contribute that cash amongst the victims of the Woodford saga or inject that money back into the HL cash income to compensate for the losses of not charging Woodford holding fees?

[ochs] 08/8/2019 12:37

The 4 significant things which have made the shares rise today are probably :-

- Chris Hill (CEO) and the CFO agreeing to waive their 2019 bonuses (not just defer as previously announced).

- Statement regarding business post Woodford "Since these announcements, Hargreaves Lansdown's own business flows and service levels have held up well."

- AUM for the Active Savings cash service reaching £1 billion in July - although this is still small scale compared to the potential when you consider that this is from only 28,000 clients.

- Total dividend up 5% (SJP kept their interim level last week).

[ochs] 08/8/2019 11:15

HL clients don't hold other versions of the Woodford fund. The reference to 'direct' means as opposed to holdings via HL Multi-manager funds which are 'indirect' where a fee is charged (quite rightly) on the MM fund itself.

[liquidkid] 08/8/2019 09:24

The z-class WEIF works out as £576 million so it looks like no retail client soldl.

Assuming HL charge 75bps on woodfeld, we took the decision to waive our platform fee where clients directly held this fund. The loss of revenue is estimated at £360,000 per month and Link Asset Services, the fund's Authorised Corporate Director, has confirmed that trading will likely be suspended until early December.

"The Financial Services Compensation Scheme (FSCS) levy rebased upwards by £3.3 million or 94% to £6.8 million."
Revenue on Cash increased by 74% to £73.2 million
Clients cash hodl is also at risk.

[liquidkid] 08/8/2019 08:32

OK corrected:
waived fees "where clients *directly* held this fund" ie the z-class hodl's which are pure HL clients so not all clients?

"Recent growth in the HL Multi-Manager funds has been subdued especially given a number of these funds have holdings in the Woodford Equity Income Fund"

[lomax99] 08/8/2019 08:22

No it does not, they announced they were waiving their platform fee for the gated income fund within days of it being gated.

[broadwood] 08/8/2019 08:13

Holding up well considering..

[red5] 08/8/2019 08:10

good numbers

[lomax99] 08/8/2019 08:05

Solid numbers from HL, oversold.

[littlepuppi7] 07/8/2019 15:47

You can see this getting very very messy. Hargreaves lansdown at 40 ish pe it's going to crash

[18bells] 07/8/2019 14:04

Found this on HL....DescriptionOffers a no-win, no-fee service for legal claims. Burford will assess the case's merits and offer to finance it if they think it is likely to succeed, in return for a share of the proceeds.Why we hold itAssets come in many shapes and sizes. One of the more unusual varieties are law suits. In commercial law, there is typically a large sum of money at stake, with two or more parties claiming the right to it, for any number of reasons. It might be a patent infringement, a claim for breach of contract, or for damage caused to another party's assets or wellbeing.Companies can pursue these claims, if they see merit in doing so. But legal expenses are just that, expenses that must pass through the profit and loss account. So pursuing a claim for recovering what is due, means lowering profits in the near term. Quoted companies in particular, don't like things that lower profits.So along comes Burford, who essentially offer a no-win, no-fee service. They'll assess the case's merits and offer to finance it if they think it is likely to succeed, in return for a share of the proceeds.Cases can take years and judges are not as predictable as one might wish. So Burford deal in uncertainties, but by having a large portfolio of cases on the go at once, a degree of smoothing is possible.Historically, Burford has achieved great results. The company claim an average achieved return of 28% p.a. from their portfolio. With cash generation from successful investments having been strong, Burford have substantially increased the portfolio of active cases, suggesting future income growth could be very attractive, if they maintain their track record of winning in court, or settling on the steps outside.https://www.hl.co.uk/funds/hl-funds/hl-select/hl-select-uk-shares/portfolio-breakdown

[ochs] 07/8/2019 11:49

Not just Woodford - you'll find Burford is a big holding in HL's own in house funds too, so not great timing for them

[liquidkid] 07/8/2019 11:35

To be sure, Burford is another Quindell.
Accounting aside, in terms of the stock promotion, it is a mis-selling scandal.
Invesco & Woodfeld have been the cornerstone investors of BUR
Hargreaves Lansdown's unashamed ramping of Woodfeld since his inception is the mis seller.
Who is left holding the bag?
Retail.
(there is only one institutional numpty left in WEIF that is a local gov't pension fund)

"To be sure, Burford will need to take on additional external capital to continue its growth as it has done successfully throughout its history, but this is a cause for celebration, not for alarm"

Hargreaves Lansdown is where retail HODL's grievances should be directed.
This is on you FCA & SFO.

[mac15] 03/8/2019 11:36

Thanks Ochs, the forward guidance will be important as well as how much bad press they get. Hope the positives are equally well covered.

[ochs] 03/8/2019 11:10

Result are until end of June - so would be less than a month. Probably of more significance will be if there's any change to forward guidance as a result.

[mac15] 03/8/2019 10:50

Final results on Thursday. Wonder what impact Woodford fiasco will have.

[ochs] 01/8/2019 20:35

Indeed, I'm hopeful for positive momentum on Active Savings.

[lomax99] 01/8/2019 17:41

Yes, but on the flip side this could be more than counter-balanced by increased client numbers, increased AUM, progress on Active Savings, etc.Needless to say, some will no doubt continue to focus on the negatives.

[ochs] 01/8/2019 17:22

Yes, but will there be any warning about the future impact of Woodford issues? - now that we know it'll be suspended until Dec - meaning a loss of revenue for HL.

[lomax99] 01/8/2019 16:01

Roll on HL's results, out next Thursday.

[mac15] 10/7/2019 17:54

Investors who found themselves "double-locked" into the suspended Woodford Equity Income fund and Hargreaves Lansdown can now transfer to a rival stockbroker – but will still face exit fees if they switch, Telegraph Money can disclose.

An email from Woodford Investment Management, seen by this newspaper, revealed the block on transfers out of Hargreaves has been lifted with immediate effect.

Until now, the nearly 133,000 Hargreaves clients with investments totalling more than £1.1bn trapped inside Neil Woodford's fund have been blocked from transferring their investments to rival providers.






Should take some pressure off.