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% 0.81% 0.10% i 0.71% View factsheet Deal
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% 0.83% 0.20% 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% 0.91% 0.10% i 0.81% 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

Feb 2015

2014 was a year of mixed fortunes for Asian and emerging markets investors. Asia was home to many of the year's best-performing stock markets - India proved to be the most prolific following a resounding victory for pro-business leader Narendra Modi at the polls. At the other end of the spectrum, countries including Russia fell markedly leaving investors nursing heavy losses.

Like the rest of the world, emerging economies will continue to face headwinds in the short term, but investors should not lose sight of the bigger picture. The long-term outlook for Asian and emerging economies remains robust, underpinned by favourable demographics, rising domestic consumption and an increasingly wealthy middle class.

As a significant importer, lower commodity prices should also provide relief for most of the region, while cheaper oil should ultimately serve as a boost for domestic consumption and corporate profitability. More adventurous investors might consider allocating a portion of their portfolios to some of the world's fastest growing nations, where diverse and exciting opportunities are plentiful.

Feb 2015

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.

Feb 2015

Expectations for an interest rate rise in the UK continue to recede. With inflation falling, wage growth sluggish and economic growth slowing the Bank of England is under no pressure to increase the base rate from its historic low of 0.5%.

Against this backdrop, and contrary to the expectations of many commentators and bond fund managers, fixed-interest investments have continued to perform well. Yields on government and corporate bonds have continued to fall (meaning prices have risen) as investors have been drawn to the (relatively) high income on offer.

In our view, many areas of the bond market offer less attractive yields than in the past, in some cases they have fallen to record low levels. Investors are receiving lower rewards (in the form of coupons, or income payments) for the risk of lending to companies and governments. While the outlook for rising interest rates and inflation look benign, bonds could continue to perform well, but we believe funds in the sector need an experienced manager at the helm.

Therefore 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 any opportunities that arise.

Feb 2015

The economic environment in Europe remains challenging. Many European governments are grappling with low or no growth and rising debt, while the risk of a member country leaving the euro remains. This picture is unlikely to change in the short term, but it's important to disconnect the outlook for the economy from the prospects for European companies.

The falling oil price and weakness of the euro could be good news for European firms. The former will reduce costs for businesses and improve the spending power of the consumer, while the latter could fuel inflation and boost overseas sales (a weakening currency makes exports cheaper for foreign buyers).

Furthermore, the European Central Bank's recent announcement that it is to follow in the footsteps of the US and UK by launching a quantitative easing programme in March could be the catalyst needed to inject positive momentum into Europe's stock markets. Europe has more than its fair share of problems, but it is home to some of the world's most successful businesses. As such we feel it would be unwise to ignore its stock markets entirely.

Wealth 150 - Our favourite funds in each sector

Feb 2015

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.

Feb 2015

Global stock markets were volatile in 2014 and this is likely to continue through 2015. Geo-political issues in Eastern Europe and the Middle East remain, quantitative easing in the UK and US has come to an end but is ongoing in Japan and about to begin in Europe, and China is shifting its focus from commodity-intensive industries towards the services industry.

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 3.5% this year, accelerating to 3.7% 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.

Feb 2015

Rather than obsessing over the wider economic environment, we tend to focus on the prospects for individual stock markets. In our view one of the best ways to grow wealth over the long term is to invest when stock markets look attractively valued, although there are no guarantees.

Despite strong performance over the past year, the Japanese stock market continues to be among the most undervalued major stock markets in the world, according to our analysis. Investors have fretted over Japan's economy, but largely ignored the fact the country is home to many great businesses. We remain positive on the long-term prospects for the Japanese stock market.

Feb 2015

The US stock market has continued to perform well, despite many commentators suggesting for some time the market looks overvalued. In our view the shares of US companies do look fair value - investors have been reassured by the strength of the economy and the number of large, global, well-known businesses listed there.

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.

View our list of low-cost Core Tracker funds

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.

Feb 2015

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.

Those which invest in gold and basic resources companies have performed poorly over the last couple of years as commodity and precious metal prices have weakened. Those investing in oil companies had a particularly torrid time as the price of oil halved in value over the year.

Russian funds have been adversely affected by the on-going crisis in Ukraine and the sanctions imposed on Russia as a result. The fall in the oil price has also had a negative impact. Indian funds were among the best performing in 2014; following Modi’s election victory in May, the government has been working to fulfil their promises of job creation and economic growth which has been positive for share prices.

Feb 2015

After a strong five years, UK stock market returns were more subdued in 2014. Yet there are plenty of reasons why 2015 could be brighter.

The UK is home to many businesses which should benefit from our thriving economy. UK inflation has continued to fall, while the price of oil has tumbled - this will act as a substantial boost for consumers and businesses, lowering the cost of fuel, materials and transport. Falling industry costs and increased consumer spending should also feed through to higher profits for well-managed companies.

The UK election in May could have a short-term impact on the stock market, but history tells us long-term performance is driven by factors other than an election. We would view any weakness as a long-term buying opportunity. Investors seeking exposure to the UK have the luxury of a range of skilled and experienced fund managers. Our favourites feature here.

Feb 2015

Equity income funds aim to generate a combination of income and capital growth by investing in a portfolio of dividend-paying shares. Many companies used the aftermath of the financial crisis to slash costs and reduce debt, emerging cash-rich and generating healthy profits. Shareholders have been rewarded with healthy, growing dividends. When dividends grow, demand for a company's shares often increases, causing the share price to rise. In this way these companies can provide shareholders with capital growth alongside a growing income, though naturally there are no guarantees. Those investing for growth can reinvest the income to boost returns.

Funds with significant exposure to small and medium-sized companies have had more lacklustre performance than the wider peer group over the past year. Small and medium-sized companies were sold heavily following a long period of outperformance relative to their larger counterparts, causing share prices to fall. This is counter to performance in 2013 when these funds generally performed better than the peer group.

The recent fall in the oil price has hurt a number of large oil companies such as Royal Dutch Shell and BP which are traditionally held by income-seeking investors. Therefore UK equity income funds such as CF Woodford Equity Income, which had very little exposure to oil companies, received a boost relative to the majority of funds in the sector.

The UK election in May could cause short-term turbulence in the stock market, but investors should note that elections rarely have a lasting impact on the stock market. Nevertheless any short-term weakness could represent a buying opportunity. With interest rates having now spent six years at 0.5%, and a rise not looking likely this year, it is unsurprising equity income funds are so popular with investors. We believe carefully chosen equity income funds could form a core for almost any portfolio.