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HL Multi-Manager High Income Class A - Accumulation (GBP)

Sell:128.36p Buy:128.36p Change: 0.39p (0.31%)
Prices as at 12 August 2022
Change: 0.39p (0.31%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 12 August 2022
Change: 0.39p (0.31%)
Prices as at 12 August 2022
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

In our current world of ultra-low interest rates, generating an attractive income from savings and investments is a challenge. Many traditional sources of income have evaporated, with instant access deposit accounts offering virtually no income and government bond yields at historically low levels.

This fund aims to offer investors an alternative solution. Managers Lee Gardhouse and Ellen Powley will seek to distribute a monthly, high income to investors, which has the potential to grow over the long term, albeit the value will fluctuate.

Our view on the sector

Funds in this sector do what they say on the tin - they aim to pay a high income to investors. There's more than one way to achieve this though. Each fund uses a different approach and invests in different areas. Some focus on bonds. They tend to pay a fixed rate of income, but the amount varies from bond to bond. Government bonds are perceived to be lower risk and pay a lower income to reflect this. Corporate bonds offer higher yields because of the extra risk taken when lending to companies. Bonds can be less volatile than company shares, but offer less potential to grow your income and initial investment. Other funds focus on dividend-paying shares and offer more potential for long-term growth. There are also funds with the flexibility to invest in all kinds of investments. In addition to shares and bonds, they might also invest in currencies, property or commodities.

Performance Analysis

This fund is a relatively new addition to our Multi-Manager range. However, it's now thirteen years since the managers of this new fund launched our HL Multi-Manager Income & Growth Trust with the aim of providing a good level of dividend income and capital growth from the UK stock market. The fund has performed well since launch, although please remember past performance is not a guide to the future, and the process for identifying high-calibre fund managers will be virtually identical on the new fund.

However, the HL Multi-Manager High Income Fund's objectives will be significantly different, prioritising a higher level of income, and as a new proposition it will not perform in the same way.

Investment Philosophy

Lee Gardhouse and Ellen Powley will look across the entire investment spectrum to identify which areas they feel offer the most attractive yields. Importantly, they will also take into consideration the sustainability and security of the income on offer, rather than targeting only the highest yielding areas of the market, which could put capital at undue risk and ultimately result in disappointment.

By blending different types of funds, constantly reviewing the portfolio, and moving between different areas of the market when more attractive opportunities emerge, they aim to deliver an impressive high income, which has the potential to grow over the long-term. This means that it will not have the same guarantee of capital as a deposit account.

Process and Portfolio Construction

The portfolio has initially been constructed with approximately 60% invested in shares and 40% invested in bonds.

This approach aims to offer the best of both worlds in a single portfolio. It offers the benefits of potential capital and income growth from a selection of the best equity income funds available, plus long-term income and lower volatility from a selection of the manager's favourite bond funds.

To help choose funds to be included in our multi-manager portfolios a proprietary analysis tool covering in excess of 2,000 funds and fund managers has been developed. This tool enables us to understand why a fund performs as it does with the aim of identifying fund managers able to add value within their areas of the market. It is used to shortlist funds worthy of further consideration in the form of face-to-face meetings. These meetings explore a multitude of aspects regarding the fund and its manager including people, process, philosophy, portfolio construction and incentivisation. These meetings allow the team to gain a deep understanding of each fund and this aids the managers in compiling a portfolio which has a balance of manager styles.

The fund is highly flexible and the managers are able to invest in higher-risk emerging market debt and other income producing assets such as property and infrastructure if they see attractive opportunities.

Please note charges can be taken from capital which can increase the yield but reduces the potential for capital growth.

question mark Manager Track Record Based on HL Quantitative Research

  • HL Multi-Manager High Income A Acc
  • IA Flexible Investment

Fund Track Record

11/08/17 to 11/08/18 11/08/18 to 11/08/19 11/08/19 to 11/08/20 11/08/20 to 11/08/21 11/08/21 to 11/08/22
Annual return 3.72% -3.35% -4.38% 19.02% -4.83%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Thomas Wells
Manager start date: 4 January 2022
Manager located in: Bristol

Thomas joined Hargreaves Lansdown as a fund manager within the multi-manager team in December 2021. He co-manages the HL Multi-Manager Asia & Emerging Markets, HL Multi-Manager High Income and HL Multi-Manager Strategic Assets funds. Prior to joining Hargreaves Lansdown, Thomas was a multi-asset fund manager at Aviva Investors, where he was responsible for managing the Aviva Investors Multi Asset Fund (MAF) range, Aviva Investors Multi-Manager portfolios and the Aviva Diversified Asset Funds. Thomas holds a MSc in Economics from UCL and a BA in Economics from Durham University. He is also a CFA charterholder.

manager photo
Manager Name: Richard Troue
Manager start date: 1 July 2019
Manager located in: Bristol

Richard joined Hargreaves Lansdown in February 2006 after completing his law degree. He joined the Investment team in February 2010, initially as an Investment Analyst, before becoming Head of Investment Analysis. In July 2019 he became part of the team responsible for managing HL's Multi-Manager funds. He currently co-manages HL Multi-Manager High Income, HL Multi-Manager Income & Growth Trust,?and HL Multi-Manager Strategic Bond Trust. He holds several investment and pensions qualifications, including the Investment Management Certificate (IMC).

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account