The funds-of-funds are pitched as stand-alone investments, with exposure across equities and bonds through third-party funds, ETFs, and HL’s own ‘building block’ funds.
David Smith, senior fund manager at Hargreaves Lansdown, who will manage the funds alongside Ziad Gergi, said the portfolios are for those looking to invest but are unsure where to start.
“HL actively manages the portfolios, and the managers will combine funds, using asset allocation techniques, to blend asset classes for diversification.”
Fund | Purpose | Who it’s for | How it should be used | Ongoing Charges Figure |
HL Adventurous Managed Portfolio | A diversified equity fund designed to provide optimised long-term capital growth at 90-110% volatility of global equity markets | Investors with a low sensitivity to volatility, and/or with 10+ years investment horizon | A stand-alone investment for the most adventurous investors, or used as the global equity component of a diversified portfolio | 0.99% |
HL Moderately Adventurous Managed Portfolio | A diversified multi-asset fund designed to provide optimised long-term capital growth at 70-90% volatility of global equity markets | Investors with 5+ years investment horizon | A stand-alone investment or used as the core part of a portfolio | 0.98% |
HL Balanced Managed Portfolio | A diversified multi-asset fund designed to provide optimised long-term capital growth at 50-70% volatility of global equity markets | Investors with 5+ years investment horizon | A stand-alone investment or used as the core part of a portfolio | 0.92% |
The portfolios will begin trading on March 8 this year, with a minimum investment of £100 or £25 by direct debit, with fees of between 0.92 and 0.99 per cent, plus HL platform fees of up to 0.45 per cent.
Smith joined the company in 2008 from Citywire, where he was head of investment analysis.
He co-manages a number of funds at HL, including the multi-manager equity & bond trusts and the HL MM Strategic Assets fund.
Gergi joined HL last year from Barclays Wealth, where he was the head of multi-asset portfolio managers.
The new funds are part of the 19 funds HL has planned to launch by next year, including ESG funds.
It will also introduce "portfolio health checks" and tools to build portfolios by 2024.
The company also plans to pilot its "augmented advice" service in the first half of this year.
sally.hickey@ft.com
