Why am I investing in 'M' class units through HL Portfolio+, whereas if I invested in the funds individually I would hold 'A' class units?
HL Portfolio+ is built using HL Multi-Manager Funds. The 'M' share class of these funds is reserved for HL Portfolio+ only.
If you invest in an HL Multi-Manager Fund outside of the HL Portfolio+ service then you will invest in the 'A' share class.
This enables our clients to have HL Portfolio+ holdings in the same account as any other HL funds which they have bought, or would like to buy in the future. It also means that we can rebalance the Portfolio+ holdings while leaving any other holdings in HL funds unaffected.
In the unlikely event that a client held the 'M' share class of the HL Multi-Manager Fund outside the HL Portfolio+ service, then we reserve the right to convert it to the ‘A’ share class of the same HL Multi-Manager Fund.
As costs are shared on a weighted basis across the share classes, we do not expect a significant difference in price or TER of the share classes.