The UK’s HL has announced that it is launching four new multi-asset index portfolio funds in response to the rise in index investing.
The number of HL clients holding index funds as their main investment has increased by 80 per cent over the last two years, the firm says. The ready-made solutions feature HL’s active asset allocation implemented over a portfolio of index funds and ETFs, supplied by BlackRock.
The firm writes that the new funds offer a simple range of cost-efficient options to suit any level of investing from 6 June 2024.
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 says: “HL clients’ investment in index funds has risen by more than two and a half times over the last seven years and the number of clients holding index funds as their main investment has increased by 80 per cent over the last two 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.”
HL Multi-Index Adventurous – asset allocation typically 100 per cent shares – aiming for 90-110 per cent volatility of global equity markets.
HL Multi-Index Moderately Adventurous – asset allocation typically 80/20 split between shares and bonds – aiming for 70–90 per cent volatility of global equity markets.
HL Multi-Index Balanced – asset allocation typically 60/40 split between shares and bonds – aiming for 50-70 per cent volatility of global equity markets.
HL Multi-Index Cautious – asset allocation typically 30/70 split between shares and bonds – aiming for 30-50 per cent volatility of global equity markets.
HL writes that its 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 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, the firm writes.
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.
