Hargreaves Lansdown has launched three model portfolios as part of its new strategy to expand its range of investment options.
The new funds-of-funds offer investors exposure to third-party funds, ETFs and Hargreaves Lansdown Building Block funds at varying levels of risk to suit different needs and requirements.
The HL Adventurous Managed Portfolio is a diversity equity fund designed to provide long-term capital growth at 90-110% volatility of global equity markets and is aimed at investors with a low sensitivity to volatility and a 10-year plus investment horizon.
The HL Moderately Adventurous Managed Portfolio is a diversified multi-asset fund designed to provide optimised long-term capital growth at 70-90% volatility of global equity markets for investors with a five year investment horizon.
The third fund, HL Balanced Managed Portfolio, offers investors long-term capital growth at 50-70% volatility of global equity markets for investors with a 5 year investment horizon. The funds will be managed by David Smith who joined Hargreaves Lansdown in 2008 from Citywire and Ziad Gergi, who joined last year from Barclays Wealth.
David Smith, senior fund manager at Hargreaves Lansdown, 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.”
The funds will start trading on 8 March with a minimum investment of £100 or £25 by direct debit and with charges of between 0.92% and 0.99% plus a platform fee of up to 0.45%.
They follow the success of the firm’s US Fund, which currently has a value of £745 million.
