HL Multi-Manager Funds
Thank you for taking the time to read the documents we sent, and for voting on the HL Multi-Manager Fund changes we proposed.
We’re pleased to announce that the changes have been approved. All four Extraordinary Resolutions, for each HL Multi-Manager Fund, got over 88% of votes in favour, which comfortably exceeded the 75% needed for each Resolution to be carried.
We’d like to thank you again for your support and we’re now looking forward to putting these changes into action.
What happens now?
The changes will take effect on 22 October 2018.
On this date the Funds will move to a single price to make it simpler for you when buying or selling.
Then on 5 November 2018, we plan to appoint our first Sub-Adviser to manage a portion of the HL Multi-Manager Income & Growth Fund. On 7 January 2019, we plan to appoint a second Sub-Adviser to manage a portion of the HL Multi-Manager Income & Growth Fund and HL Multi-Manager Equity & Bond Fund.
We’ll provide more details on the appointments closer to the time and you can read more about why we’re making the changes, and what they mean for you, below.
- Why are HL making changes to the HL Multi-Manager Funds?
- What do the changes mean?
- What are the benefits?
- How will the changes affect charges?
- Why is HL making these changes now?
- Why did investors have to vote on this?
- When will the changes happen?
- Why are HL only making these changes in two Funds to begin with?
- Could HL move all its current Fund holdings to Sub-Advisers?
After a year of analysis and preparation by an excellent team of people within Hargreaves Lansdown, I'm pleased to let you know that the changes we asked you to vote on have been approved for each of our funds. Over the 18 years since I set up the first of our multi-manager funds we've made many incremental changes to improve performance, but this was the first time that we needed to ask for your vote.
Legal documents are never the most straightforward read, so thank you to those of you took the time to vote on the changes. Now the votes have been counted I can share with you some more detail on why I think the extra flexibility given to us will be in your best interests.
When we started looking into this new way of assessing managers our focus was entirely on reducing costs, but we quickly realised that we could also work with those managers to create bespoke and more efficient portfolios - importantly giving us the potential to deliver a better longer-term performance.
Just one example - I've long felt that fund managers' absolute worst habit is holding too much cash - even as little as 5% over time can act as a drag on performance. But with this new structure we can work with the managers to create portfolios for us where they run with little or no cash at all. I believe the future looks bright with this new flexibility but the core of what we're going to do will be unchanged.
We're proud of the returns we've delivered over the years and we'll start with these changes in a measured fashion - moving firstly to single pricing of the funds on the 22nd of October. I look forward to updating you with the progress in the months and years to come.
Please note: This video is not personal advice or a recommendation to invest. If you are unsure whether an investment is right for you, please seek advice. The value of investments can fall as well as rise, so you could get back less than you invest. Past performance is not a guide to the future. The HL Multi-Manager funds are managed by our sister company HL Fund Managers Ltd.