'It wasn't the outcome we hoped for': Hargreaves UK income fund falls 7% in first year

Provident Financial impact

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. Hargreaves challenges IA All Companies sector with 'low-cost' fund launch 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...