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HL Multi-Manager Income & Growth Trust Class A - Income (GBP)

Sell:97.50p Buy:97.50p Change: 0.09p (0.09%)
Prices as at 18 June 2019
Change: 0.09p (0.09%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 18 June 2019
Change: 0.09p (0.09%)
Prices as at 18 June 2019
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & 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

This is our one-stop solution for UK Equity Income exposure, combining the talents of outstanding equity income managers within a single fund. It seeks to produce both capital and income growth over the long term.

Our multi-manager range allows investors to delegate a portion of the responsibility for their portfolio to us. It is often implied growth investors should avoid income-generating strategies and income-orientated investors will not achieve growth. Our analysis of markets suggests this could not be further from the truth. In many cases high yield equity indices have delivered higher total returns over low yield (or growth) stocks over the long term. We feel the fund can therefore be used to generate an income by withdrawing the monthly dividend or the income can be reinvested for growth.

Our view on the sector

Equity income funds are popular with investors. Most aim to generate a rising income, and increase the value of your original investment, over the long term. The income can be paid out, or reinvested in the fund to boost long-term growth. Different fund managers take different approaches to income investing. Some focus on larger companies that are seen to be more stable and have paid regular dividends for many years. Others invest in higher-risk small and medium-sized companies. These might pay a lower income to start with, but have more growth potential. We think carefully chosen equity income funds can form the cornerstone of almost any portfolio.

Performance Analysis

The fund has historically offered an element of shelter in tough market conditions while capturing gains during stronger periods. Our aim is to outperform the IA UK Equity Income sector and FTSE All Share index over the long term by generating higher levels of income and capital growth.

The Trust has outperformed the IA (Investment Association) UK Equity Income sector since launch. Relative to its peers, it performed exceptionally well during the financial crisis of 2008, due in part to its exposure to defensive managers. The fund struggled to keep pace following the market rotation in March 2009 as economically sensitive stocks, particularly under-represented within the portfolio, rebounded strongly as a result of Bank of England's Quantitative Easing program. However, since 2010 the fund has steamed ahead of its peers.

Investment Philosophy

Lee Gardhouse and Ellen Powley utilise a simple approach to identify exceptional, value-adding fund managers in which to invest for the long term.

The managers examine the entire market in search of the best stock-picking talent, believing the most exceptional managers can be identified through a combination of detailed quantitative and qualitative analysis. We believe our propriety quantitative analysis system is one of the major differentiating factors between us and the rest of the industry.

Process and Portfolio Construction

The portfolio retains a core of defensive managers, dovetailed with exposure to managers investing in more economically sensitive companies.

Today's portfolio retains a core of defensive managers owning large companies with less economically sensitive earnings. Core positions currently include exposure to the Woodford Equity Income and Artemis Income Funds. These holdings tend to invest in steady businesses with attractive yields. This is dovetailed with exposure to managers investing in more economically-sensitive companies, including higher-risk smaller and medium-sized firms, such as the Marlborough Multi Cap Income Fund. We feel given the uncertain economic background, a blended approach should stand investors in good stead.

We have developed a proprietary analysis tool covering in excess of 2,000 funds and fund managers 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. The team utilises this 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 can invest up to 100% of its assets in equities although 80% must be held within UK equities, in order to qualify for the IMA UK Equity Income sector. In addition, the Trust must intend to achieve a historic yield that is 10% higher than that of the FTSE All Share Index yield at its year end.

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 Income & Growth...
  • FTSE All-Share TR

Fund Track Record

18/06/14 to 18/06/15 18/06/15 to 18/06/16 18/06/16 to 18/06/17 18/06/17 to 18/06/18 18/06/18 to 18/06/19
Annual return 12.36% -3.89% 19.96% 4.10% -9.34%

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.

Fund Management Group Comment

Hargreaves Lansdown is one of the UK's leading independent financial services providers and asset management specialists. The business was established in 1981 by Peter Hargreaves and Stephen Lansdown and in May 2007 obtained a listing on the London Stock Exchange.

The HL Multi-Manager funds offer a broadly diversified, managed portfolio of funds through a single investment. The range includes equity and bond funds investing across the UK, Europe, Asia, and Emerging Markets and provides options for both income and growth investors. These funds are managed by our sister company Hargreaves Lansdown Fund Managers.

Information about the fund

Fund manager biography

manager photo
Manager Name: Lee Gardhouse
Manager start date: 18 October 2002
Manager located in: Bristol

Lee holds a BA (Hons) degree in Economics from Liverpool John Moores University and has passed the Associate of the Society of Investment Professionals exam. Lee joined Hargreaves Lansdown's investment department in 1995 and became Investment Director in 2006 assuming overall responsibility for the Multi-Manager funds and Portfolio Management Service. He is currently the co-manager of the HL MM Equity & Bond, HL MM Special Situations, HL MM Income & Growth, HL MM Strategic Bond, HL MM UK Growth, HL MM European and HL MM High Income funds and has managed all these since launch.

manager photo
Manager Name: Ellen Powley
Manager start date: 1 February 2006
Manager located in: Bristol

Ellen holds a BSc (Hons) degree in Economics from the University of Birmingham and has been a member of the Investment team since July 2004 having joined Hargreaves Lansdown in March 2003. She has been the co-manager of the HL Multi-Manager Income & Growth Trust since February 2006 and the Portfolio Management Service since June 2007. Ellen has also been the co-manager of the HL Multi-Manager UK Growth and HL MM High Income funds since their launch. Ellen passed the Investment Management Certificate exam.

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 an ISA, Lifetime ISA, SIPP or Fund & Share Account