2nd June 2015
Hargreaves Lansdown has launched six ready-made portfolios featuring its multi-manager funds aimed at non-advised investors.
The range is called Portfolio + and it will be managed and rebalanced by Hargreaves’ investment research team.
Hargreaves says investors can have their portfolios up and running in 10 minutes with a sum of £1,000 and no additional charges.
Danny Cox, head of communications at Hargreaves Lansdown, says: “Portfolio + offers a third way of investing for the growing throng of investors who want their investments managed for them, but don’t want to pay for financial advice. It will provide investors with a fully managed portfolio by taking three simple steps online.
“This service can meet the needs of first-time investors, who are yet to build up the knowledge and confidence to choose their own funds, right through to retired investors who simply want to leave investment decisions to someone else.”
Hargreaves says the service offers a “third way” for investors. It says that private investors have historically gone down one of two routes – either building a portfolio themselves, or employing an adviser or discretionary manager to build one for them. Hargreaves says Portfolio + offers a third alternative, a non-advised, ready-made portfolio they can select themselves based on three simple questions.
Over time, the different elements of the portfolio will perform differently. This can result in a portfolio become more heavily exposed to areas which have performed well, which could increase risk. Every six months, in February and August, the portfolio will be rebalanced back to its original weightings.
HL Portfolio+ in detail
There are six portfolios to choose from, designed to achieve different aims and objectives. Investors can choose to invest for either income or growth, within three pre-determined risk levels.
The portfolios are constructed using our HL Multi-Manager funds as building blocks, which means investors will benefit from our market-leading fund research. The portfolios are built, managed and rebalanced twice a year by our Investment Research team.Portfolio + is not a discretionary service.
Choosing the right portfolio can be done in three steps:
1. Select investment goal – growth or income
2. Select level of risk – conservative, balanced or adventurous
3. Select the account – ISA, SIPP, fund account, Junior ISA
An investment in the Portfolio + service can be held alongside any other Vantage funds and shares, and can be viewed online in the same account.
There are no account set up charges, and no initial charges for the funds. There are also no additional on-going charges for the Portfolio + service.
All investors pay is the ongoing charges of the underlying funds and the Vantage annual charge of up to 0.45% per annum. For example, an investor using the adventurous income portfolio would pay an ongoing fund charge of 1.34% (estimated Ongoing Charge Figure (OCF)/ Total Expense Ratio (TER), plus the Vantage service charge of 0.45%, a total of 1.79%.
The six portfolios: at a glance
Adventurous Income: an adventurous portfolio designed to generate a rising dividend income, alongside capital growth. The focus is on UK shares, but it also includes some investments overseas. Estimated yield 3.03% (variable and not guaranteed)
Balanced Income: a portfolio holding a mixture of shares and bonds, aiming for income and capital growth with less volatility than the more adventurous option. Estimated yield 3.03% (variable and not guaranteed)
Conservative Income – a more conservative income portfolio diversified across a number of different investment areas, such as shares, bonds and also total return funds to reduce risk. Estimated yield 2.38% (variable and not guaranteed)
Adventurous Growth: an adventurous growth portfolio which includes exposure to areas with greater growth potential and higher risks, like emerging markets and smaller companies.
Balanced Growth: a portfolio holding a mixture of shares, bonds and total return funds which should be less volatile than more adventurous options.
Conservative Growth: a more conservative portfolio diversified across a number of different investment areas, such as shares, bonds and total return funds, to manage risk.
Estimated Total Expense Ratios
Portfolio + TER (estimated)
Adventurous Income 1.34%
Balanced Income 1.34%
Conservative Income 1.35%
Adventurous Growth 1.46%
Balanced Growth 1.45%
Conservative Growth 1.39%
The portfolios will blend together the following Multi-Manager funds:
HL Multi-Manager Balanced Managed
HL Multi-Manager Equity & Bond
HL Multi-Manager Income & Growth
HL Multi-Manager Special Situations
HL Multi-Manager Strategic Bond