Hargreaves Lansdown has appointed Marlborough to run a bespoke UK equity income segregated mandate for its multi-manager range.
Managed by Sid Chand Lall, it will invest across the market-cap spectrum, with a bias toward mid- and small-cap companies, and will follow a similar approach to his Marlborough Multi Cap Income fund.
Hargreaves’ £2bn Multi-Manager Income & Growth Trust has been a long-term investor in Lall’s existing £770.2m fund, which accounts for 8.1% of its portfolio. This will now transfer into the new segregated mandate.
This is the third mandate Marlborough has snagged from Hargreaves, having picked up two UK smaller companies mandates for its multi-manager funds last year. Run by Eustace Santa Barbara and Guy Feld, they mirror the pair’s £1bn UK Micro-Cap Growth and £210m Nano-Cap Growth funds.
Richard Goodall, CEO of Marlborough, described the win as “another very positive development at an exciting time in Marlborough’s growth story” and evidence it is continuing to broaden its proposition.
Lee Gardhouse, CIO of Hargreaves Lansdown Fund Managers, added: “Our relationship with Marlborough stretches back more than 20 years and we’re very pleased to be working with them on our continuing adoption of segregated mandates across our multi-manager fund range. We’ve backed the Multi Cap Income team since they launched the fund in 2011 and believe there remains a long-term opportunity in higher-yielding mid-cap and small-cap companies.”
The HL Multi-Manager Growth & Income Trust was among the funds flagged for needing to improve performance in the D2C giant’s latest assessment of value (AoV) report.
The fund, which had been previously plagued by its exposure to the Woodford Equity Income fund, is currently sitting on losses over all major timeframes. According to Trustnet, it has lost 4% over one year, while the IA UK Equity Income sector has fallen 1.6%.
