Industry Updates

Hargreaves Lansdown partners with BlackRock to launch multi-asset index range

The four funds come as client demand grows for passive vehicles

Theo Andrew

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Hargreaves Lansdown has launched four multi-asset index portfolios using BlackRock ETFs and index funds in response to “the rise in index investing”.

The four funds – ranging from ‘adventurous’ to ‘cautious’ – will be exclusively made up of BlackRock funds and will launch on 6 June with an ongoing charge figure (OCF) capped at 0.30%.

Clients must also pay a Hargreaves Lansdown platform fee of 0.45% within an ISA, SIPP and fund and share account, or 0.25% within a LISA.

The HL Muli-Index Adventurous fund will be 100% allocated to equities and aims for a 90-110% volatility of global equity markets.

The HL Multi-Index Moderately Adventurous fund will have an 80/20 split between equities and bonds and targets 70-90% volatility of global equity markets.

The HL Multi-Index Balanced fund will have a 60/40 split between equities and bonds with a 50-70% volatility of global equity markets.

Finally, the HL Multi-Index Cautious fund will have a 30/70 split between equities and bonds and aims for 30-50% volatility of global equity markets.

The four funds will be managed by Hargreaves Lansdown fund managers Ziad Gergi and David White.

It is the investment platform’s first wholly passive fund range and comes as clients holding index funds as their main investment has increased by 80% over the past two years, it said.

“HL clients’ investment in index funds has risen by more than two and a half times over the last seven years,” Toby Vaughen, CIO of Hargreaves Lansdown, said.

“They are part of our evolving strategy, which aims to expand and improve the range of investment options we provide to clients at all stages of their investment journey, from beginners to highly experienced investors.”

Hargreaves Lansdown said two funds within the range are already used within its HL Ready-made Pension Plan as part of SIPP clients ‘default’ investment strategy.

It added the four funds are designed to complement its three managed portfolio solutions launched in January 2023.

In a sign of its changing approach to ETFs and index funds, the group scrapped trading fees for regular savings into ETFs.

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