Hargreaves Lansdown (HL) will open three actively-managed fund of funds to investors in March, with the firm aiming to grow its range of investment options to clients at all stages of their investment journey.
The three “ready-made” strategies will combine third-party funds, ETFs, and HL Building Block funds, and incur HL’s platform fee of 0.45% on top of the OCF, which varies for each strategy.
The highest-risk option, HL Adventurous Managed Portfolio, is for investors less sensitive to volatility and an investment horizon of 10 years or more. Its aim is to provide capital growth at 90-110% volatility of global equity markets.
The HL Moderately Adventurous Managed Portfolio, the next step down in terms of risk, is designed to provide growth at 70-90% of global equity markets, targeting investors with a shorter time horizon of five years or more. Its ongoing charges figure (OCF) is 0.98%, marginally lower than its adventurous counterpart which charges 0.99%.
The strategy with the lowest risk, the HL Balanced Managed Portfolio, also has the lowest fee (0.92%), and targets growth at 50-70% volatility of global equities. It too is designed for investors with a horizon of five years or more.
David Smith and Ziad Abou Gergi (pictured), who was promoted to head of HL’s multi-manager team in November, will run the portfolios.
There is a £1 per unit fixed-offer launch price until 23:59 on 7 March, before the funds start trading on 8 March. The minimum investment is a lump sum of £100, or £25 by direct debit.
Smith said: “HL’s new ready-made investment portfolios are for those looking to invest but unsure where to start. Investors can relax in the knowledge that our specialists will manage the day-to-day investment decisions. They will look to maximise returns according to the level of risk chosen. HL actively manage the portfolio, and the managers will combine funds, using asset allocation techniques, to blend asset classes for diversification.”
