Hargreaves Lansdown has warned Crispin Odey that he is “biting the hand that feeds him” by criticising the platform industry.
The company, which operates the Vantage platform, says Odey should “be careful what he says”, as platforms are the main way that his retail funds gather assets.
On Monday, fund management star Odey unveiled plans to launch a wealth management company which will charge flat fees of 1% for clients. He slammed the wealth management industry as “bloated” and says the platform model is “doomed”.
He says: “Private clients want to buy a fund manager’s judgment, not an endless choice of ways to lose money.”
He slammed the wealth management industry as “bloated” and says the platform model is “doomed”
But Meera Patel, a senior analyst at Hargreaves Lansdown, says: “We are not trying to pitch funds to help people lose money as this is not helpful to our business. He is on our platform and we are getting him business. He is basically biting the hand that feeds him.”
Patel says platforms such as Hargreaves Lansdown’s Vantage provide research, including the firm’s Wealth 150 list of recommended funds, to help investors. (article continues below)
Orlando Montagu, a partner at Odey, says: “The point we are making is simply that performance is everything. All we are saying is that all of us are on notice that we have to get performance for clients.”