Hargreaves Lansdown
Wealth 150 - Our favourite funds in each sector

The Wealth 150

A list of favourite funds from our experts

The Wealth 150 contains our favourite funds from across the major sectors. Our research team have analysed over 2,500 funds to identify those which they believe offer the best prospects over the long-term.

Our Wealth 150+ features funds where we have negotiated super low charges for our clients. We believe these funds represent the ultimate combination of low management costs and first-class performance potential.

The Wealth 150 is designed for people who would like to choose their own funds. It doesn't constitute a personal recommendation. If you have any doubts as to the suitability of an investment for your circumstances, please contact us for advice. The value of investments can fall as well as rise so you could get back less than you invest.

How do we select Wealth 150 funds?

  • Detailed assessments of fund investment strategies
  • In-depth mathematical analysis to find those funds that have produced consistent outperformance
  • Thousands of hours of interviews with leading fund managers

Change view: Charges and discounts | Prices and yields | Annual percentage growth | Features & income

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Asia Pacific & Emerging Markets

Our view on the Asia Pacific & Emerging Markets sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.92% 0.05% i 0.87% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.82% 0.13% i 0.69% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.88% 0.20% i 0.68% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

Corporate Bond

Our view on the Corporate Bond sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.59% 0.09% i 0.50% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.59% 0.09% i 0.50% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.57% 0.10% i 0.47% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.75% 0.12% i 0.63% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.37% 0.15% i 0.22% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.85% 0.43% i 0.42% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

Europe

Our view on the Europe sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.86% 0.15% i 0.71% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.82% 0.10% i 0.72% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

Flexible, Mixed & Targeted Absolute Return

Our view on the Flexible, Mixed &
Targeted Absolute Return sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.70% 0.13% i 0.57% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.87% 0.09% i 0.78% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.83% 0.35% i 0.48% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.74% 0.075% i 0.665% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.79% 0.13% i 0.66% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.60% 0.20% i 0.40% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

Global

Our view on the Global sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.84% 0.21% i 0.63% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.80% 0.15% i 0.65% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

Japan

Our view on the Japan sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.96% 0.10% i 0.86% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.92% 0.25% i 0.67% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

Specialist

Our view on the Specialist sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 1.25% 0.40% i 0.85% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

UK Growth

Our view on the UK Growth sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.77% 0.20% i 0.57% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.90% 0.10% i 0.80% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.81% 0.15% i 0.66% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.79% 0.05% i 0.74% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.85% 0.145% i 0.705% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.99% 0.22% i 0.77% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

UK Income

Our view on the UK Income sector »

Net initial chargeAnnual chargeActions
Ongoing charge (OCF/TER)Ongoing savingNet ongoing charge
Wealth 150 Plus fund 0.00% 0.79% 0.09% i 0.70% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.75% 0.15% i 0.60% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.79% 0.15% i 0.64% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.80% 0.28% i 0.52% View factsheet Deal
Wealth 150 Plus fund 0.00% 0.82% 0.10% i 0.72% View factsheet Deal

Change view: Charges and discounts  |  Prices and yields  |  Annual percentage growth  |  Features & income

Oct 2014

Over recent years, investors' enthusiasm for emerging markets has waned. Growth in the region has slowed, partly as China rebalances its economy from an investment-heavy, export-led model to one more reliant on domestic consumption. This is having a negative impact on neighbouring economies. The withdrawal of quantitative easing (QE) by the US Federal Reserve has also proved unhelpful, contributing to a weakening of emerging markets and Asian currencies over the past 18 months, and a general dampening of sentiment towards the region.

While the above issues may continue to dominate the headlines in the short term, investors should not lose sight of the bigger picture. The headline growth rate in China may be moderating, but it is still growing at an enviable rate compared with the rest of the world. The long-term outlook for Asian and emerging economies remains robust, underpinned by favourable demographics, rising domestic consumption and an increasingly wealthy middle class.

The emerging world's stock markets have seen some improvement this year. While periods of volatility should be expected, we believe opportunities are plentiful for adventurous investors willing to take a long-term view.

Oct 2014

Funds in these sectors blend a range of equities and bonds, and some can hold alternative investments which can offer shelter during falling markets. They encompass a wide variety of strategies from the cautious to the more adventurous.

Funds in the Flexible Investment sector can invest up to 100% in shares or invest a large proportion in bonds or cash. Funds in the Mixed Investment 40-85% Shares sector invest in both bonds and shares, but the allocation to shares must be between 40% and 85%. In the Mixed Investment 20-60% Shares sector funds are likely to have a higher allocation to corporate bonds than the two sectors mentioned previously, and the shares element can be between 20% and 60%. The Mixed Investment 0-35% Shares sector is home to funds that can only hold up to 35% in shares, and are therefore likely to hold the largest weighting in bonds.

The Targeted Absolute Return sector differs in that funds can actively use strategies to minimise the impact of falling stock markets. This means they can perform quite differently from more traditional funds.

Oct 2014

Concerns about economic growth and heightened political tensions lie at the forefront of many investors' minds. These fears, in addition to the historically low interest rates currently on offer, have sustained the popularity of bond investing, pushing the price of government and corporate debt higher, and yields lower. Against the expectations of many commentators, corporate bond markets have performed remarkably well this year.

The first UK interest rate rise since 2007 is now on the horizon and this will pose a new challenge to fixed interest investors; higher interest rates make the fixed income offered by bonds less attractive when compared with cash deposits. All other things being equal, when interest rates rise, bond prices fall.

Certain areas of the bond market, including many high yield bonds, now offer less attractive yields than we have seen in the past. The need to have an experienced hand at the helm of any bond fund is increasing. We continue to favour strategic bond funds run by proven managers, with sufficient scope to change the portfolio to shelter investors as necessary, or take advantage of opportunities.

Oct 2014

The debate around how to fix the euro zone continues to intensify. With the currency union stuck in a low growth, low inflation environment, the pressure is building for policymakers to deliver a sustained recovery. Concerns have dampened investor sentiment, and this has been reflected in the performance of the region's stock markets this year.

However, we believe economic news has little bearing on the success of many European businesses, a number of which produce goods and services which are desired globally. The long-term fate of these companies is therefore not tied to their home economy.

While economic growth in the euro zone has ground to a halt this year, European companies as a whole have finally reported positive earnings growth after three years of steady declines. This improvement hasn't been fully reflected in share prices and should earnings growth continue, share prices could rise further. This could prove an opportune time to invest.

For long-term investors willing to look past the euro zone's economic problems and focus on the prospects of well-run, attractively-valued companies, we believe significant opportunity remains. A handful of fund managers have built outstanding reputations investing in Europe's diverse stock markets and our favourites can be found here.

Oct 2014

Funds in these sectors blend a range of equities and bonds, and some can hold alternative investments which can offer shelter during falling markets. They encompass a wide variety of strategies from the cautious to the more adventurous.

Funds in the Flexible Investment sector can invest up to 100% in shares or invest a large proportion in bonds or cash. Funds in the Mixed Investment 40-85% Shares sector invest in both bonds and shares, but the allocation to shares must be between 40% and 85%. In the Mixed Investment 20-60% Sharessector funds are likely to have a higher allocation to corporate bonds than the two sectors mentioned previously, and the shares element can be between 20% and 60%. The Mixed Investment 0-35% Shares sector is home to funds that can only hold up to 35% in shares, and are therefore likely to hold the largest weighting in bonds.

The Targeted Absolute Return sector differs in that funds can actively use strategies to minimise the impact of falling stock markets. This means they can perform quite differently from more traditional funds.

Oct 2014

Global stock markets have been volatile over recent months. On the surface, there is much for investors to worry about - geopolitical tensions in Eastern Europe and the Middle East, concerns of a Chinese 'hard landing', the Ebola outbreak and ongoing weakness in the euro zone, to name just a few. However, it is important not to lose sight of the bigger picture. The global economy has recovered well from the financial crisis and the outlook appears robust. The IMF forecasts global economic growth of 3.3% this year, accelerating to 3.8% next year. Against this backdrop, many companies should be capable of growing revenues and profits.

The global universe of investable companies is vast, providing no shortage of opportunities for skilled stock pickers to exploit. Funds in this sector can provide valuable diversification, offering investors exposure to a range of different sectors, regions and currencies.

Oct 2014

Many column inches have been dedicated to Japan and the state of its economy since the election of Shinzo Abe in 2012. Some of his policies have the potential to reverse the long period of sub-par performance for the Japanese economy and reinforce its position as an Asian powerhouse.

While this is positive, we tend to pay less attention to the wider economic environment and focus more on the long-term prospects for a country's stock market. Currently the shares of Japanese companies are among the cheapest in the developed world. Company earnings have also been strong and we are currently positive on the long-term prospects for the Japanese stock market.

Oct 2014

US economic and corporate data is probably the most scrutinised in the world. Many investors obsess over the latest economic growth figures or the latest quarterly company earnings reports. On the whole we believe this is a futile exercise. Ignoring economic and stock market 'noise' and focusing on the long-term prospects for companies is likely to yield better returns for investors.

The size and importance of the US stock market globally makes it difficult to find an edge over other investors and outperform. For those seeking exposure to larger US companies we feel a low-cost passively managed fund could be considered.

We continue to seek US fund managers with the potential to perform well over the long term, but currently believe there are more opportunities for active fund managers to add value among smaller and medium-sized companies, and this is therefore where our Wealth 150 exposure is currently concentrated.

Oct 2014

The specialist sector contains a wide array of funds, many of which provide exposure to specific themes. They could be chosen by investors looking for diversification beyond the mainstream sectors such as UK income, Europe or emerging markets. This sector contains many funds which invest in companies more sensitive to economic growth. Given the uncertainty surrounding the outlook for global economic growth over the past few years, these funds have been volatile. Those which invest in gold and basic resources companies, for example, have performed poorly over the last couple of years as commodity and precious metal prices have weakened. This year, funds in India have performed well following Narendra Modi's election, and Russian funds have been adversely affected by the ongoing crisis in Ukraine.

Oct 2014

UK unemployment has continued to fall over the past six months, underlining the UK's status as the world's fastest growing major developed economy. Although rising numbers of Britons are in work, wage growth has been notably absent from the recovery so far. As a result inflation has continued to fall, and there appears to be little pressure on the Bank of England to raise interest rates before next year's election. We continue to believe interest rates will remain low for the foreseeable future, which should provide a favourable backdrop for UK businesses and households.

The UK stock market has been relatively weak so far this year, with small and medium-sized companies, in particular, suffering from a bout of profit-taking. We continue to view any short-term weakness as a long-term buying opportunity. This sector has no shortage of skilled and experienced fund managers from which to choose.

Oct 2014

These funds aim to deliver both income and capital growth and this combination makes them extremely popular. The sector has rebounded strongly from the financial crisis, providing returns well above inflation.

Company profitability has been improving as many businesses have reduced debt and become more efficient. Investors in such businesses have been rewarded with a healthy, growing, dividend. In addition, when a company's potential is recognised by other investors, its share price will often rise, offering the added benefit of capital growth.

With income increasingly scarce, it is little surprise that equity income funds continue to find favour with investors. We believe they can form the core of almost any portfolio. Those not immediately seeking income can elect to have dividends reinvested, compounding returns. There are several successful and well-managed funds in the sector, and here we highlight our favoured managers.