"Hargreaves Lansdown unveils four index portfolio funds run ...

Hargreaves Lansdown (HL) has partnered with BlackRock to launch four new multi-asset index portfolio funds “in response to the rise in index investing”.

In a statement on 13 May, the UK platform provider said the number of HL clients holding index funds as their main investment has increased by 80% over the last 2 years.

The portfolios will be invested exclusively into index funds and ETFs managed by BlackRock. Investors will have access to the breadth and depth of the world’s leading asset manager and the UK’s largest investment platform for retail investors in a single investment.

Two of the multi-index range already power the HL Ready-Made Pension Plan (launched November 2023) to provide retail SIPP clients with a ‘default’ investment strategy.

The new funds offer a “simple range of cost-efficient options to suit any level of investing” from 6 June 2024, HL said.

These funds complement the active ‘HL Managed’ ready-made solution range successfully launched last year, to provide a comprehensive selection of ready-made solutions for UK retail investors.

Toby Vaughan, chief investment officer, Hargreaves Lansdown: “HL clients’ investment in index funds has risen by more than two and a half times over the last 7 years and the number of clients holding index funds as their main investment has increased by 80% over the last 2 years.

“Our new ready-made multi-index investment portfolios add further choice for investors to meet that demand and are an easy cost-efficient solution for those looking to get started with investing. They are part of our evolving strategy, which aims to expand and improve the range of investment options we provide to clients at all stages of their investment journey, from beginners to highly experienced investors.”

The four new funds are:

• HL Multi-Index Adventurous – asset allocation typically 100% shares – aiming for 90-110% volatility of global equity markets.
• HL Multi-Index Moderately Adventurous – asset allocation typically 80/20 split between shares and bonds – aiming for 70–90% volatility of global equity markets.
• HL Multi-Index Balanced – asset allocation typically 60/40 split between shares and bonds – aiming for 50-70% volatility of global equity markets.
• HL Multi-Index Cautious – asset allocation typically 30/70 split between shares and bonds – aiming for 30-50% volatility of global equity markets.

HL’s fund managers will use their knowledge to choose the right mix of shares and bonds funds in different sectors and countries around the world within each fund.

The two HL fund managers responsible for the new funds are  Ziad Gergi and  David White.

Gergi came to Hargreaves Lansdown last year from Barclays Wealth where he was the Head of Multi-Asset Portfolio Managers. Ziad is jointly responsible for managing the HL Multi-Manager Balanced Managed Trust, the HL Multi-Manager Equity & Bond Trust and the HL Multi-Manager Special Situations Trust. Ziad started his investment career in 2005 when he joined Barclays as an equity portfolio manager and sector analyst in Paris. He moved to Barclays’ London office in 2011 to join Barclays Wealth’s multi-manager team covering various equity markets and managing the firm’s mixed assets funds.

White joined HL in 2022 to develop and manage our passive fund capabilities. David is the lead manager for the Multi Index fund range, and HL’s workplace default fund, HL Growth. David has been managing Multi Manager funds for over 15 years. He joined HL from Nationwide and prior to that he worked at BMO Global Asset Management, where he ran $5bn of institutional multi-manager portfolios.

The funds, minimum investment lump sum £100 or £25 monthly, will start trading on 6 June 2024.

The fund OCF capped at 0.30%, plus HL platform fee:

ISA – up to 0.45%

LISA – up to 0.25%

JISA – Free

SIPP – up to 0.45%

Fund and share account – up to 0.45%