As a Hargreaves Lansdown client, you have likely noticed the rise in popularity of index funds as an investment option. In fact, Hargreaves Lansdown has seen an 80% increase in clients using index funds as their primary investment over the past two years. Responding to this growing demand, Hargreaves Lansdown has partnered with BlackRock to launch four new multi-asset index portfolio funds. These ready-made portfolios provide you with a simple, cost-efficient way to get started investing in a diversified basket of index funds and ETFs managed by one of the world’s leading asset managers. Whether you’re a beginner investor or looking to complement your current active fund holdings with some passive exposure, these new offerings aim to suit your needs. The new funds build on Hargreaves Lansdown’s strategy to expand investment choices for clients at every stage of their investing journey.
Hargreaves Lansdown Partners With BlackRock for New Offerings
BlackRock, the world’s largest asset manager, has partnered with Hargreaves Lansdown (HL) to provide index funds for the UK investment platform’s new range of multi-asset model portfolios. HL launched its first active model portfolios last year and is now complementing them with passively-managed options in response to the rise in popularity of index funds among its clients.
Meeting Demand for Low-Cost Investing
According to HL chief investment officer Toby Vaughan, the number of HL clients using index funds as their main investment has increased 80% over the past two years. The new HL Multi-Index portfolios aim to provide easy, cost-efficient solutions for these investors.
Range of Risk Options
The portfolios come in four risk levels, from 100% equity exposure for the Adventurous option down to a 70-90% equity allocation for the Moderately Adventurous portfolio. HL intends for these to be simple, ready-made choices for investors at any experience level.
Part of an Evolving Strategy
The launch of these passive fund model portfolios is part of HL’s strategy to expand its range of investment options for clients. HL aims to provide solutions for investors whether they are just getting started or are highly experienced. The passive fund options complement HL’s existing active fund model portfolios, giving clients more choices to meet their needs.
Leveraging BlackRock’s Capabilities
By selecting BlackRock to provide the underlying funds for these model portfolios, HL is able to leverage the unparalleled range of index funds and ETFs from the world’s largest asset manager. Clients will have access to BlackRock’s indexing capabilities through one of the UK’s biggest investment platforms. The first two portfolios in the range already power HL’s default investment option for its self-invested personal pension (SIPP) product.
The passive fund model portfolios from HL and BlackRock are available to HL clients beginning June 6, 2024. They provide another way for investors to access low-cost, diversified investment strategies through the UK’s leading investment platform.
Four New Multi-Asset Index Funds Launched
Hargreaves Lansdown has partnered with BlackRock to provide investors with four new multi-asset index portfolio funds.### Diversified, Low-Cost Options
The portfolios offer retail investors diversified, low-cost investment options to suit any risk tolerance. Two existing options already power HL’s Ready-Made Pension Plan default investment strategy. The new funds expand the range to include options for self-invested personal pension (SIPP) clients and other investors.
Responding to Demand
The new passive fund range is in response to the increased demand for index fund investing. According to Hargreaves Lansdown, the number of clients using index funds as their primary investment has risen 80% in the past two years. The range aims to provide simple, affordable options for investors at any stage.
Complementing Active Fund Range
The multi-index funds complement HL’s active “HL Managed” ready-made solution range launched last year. Together, the ranges offer comprehensive ready-made investment solutions for UK retail investors seeking either active or passive fund management.
Four Risk-Based Options
The four new passive multi-asset funds offer options for different risk tolerances, from 100% equity exposure to a 70-90% equity and 10-30% fixed income split. The latter aims to capture 70-90% of equity market returns with lower volatility.
Partnership With Industry Leader
By partnering with BlackRock, one of the world’s leading index fund managers, Hargreaves Lansdown offers investors a simple way to access BlackRock’s index funds and ETFs through the UK’s largest investment platform for retail investors. The partnership expands Hargreaves Lansdown’s strategy to provide investment options for clients at every stage of their investment journey.
Passive Investing Gains Popularity Among Hargreaves Lansdown Clients
Index Funds and ETFs Provide Cost-Efficient Options
Hargreaves Lansdown has observed an 80% increase in clients primarily investing in index funds over the past two years. In response, the firm has launched four new multi-asset model portfolios comprising passive funds and ETFs managed by BlackRock. These passive offerings provide investors with lower-cost investment options to suit various risk tolerances.
Meeting Changing Demands
Hargreaves Lansdown aims to offer investment solutions for clients at all stages of their investment journeys. The new passive portfolios complement the active HL Managed portfolios launched last year. According to Toby Vaughan, Hargreaves Lansdown’s Chief Investment Officer, “Our new ready-made multi-index investment portfolios add further choice for investors to meet that demand and are an easy cost-efficient solution for those looking to get started with investing.”
Portfolios for Different Risk Appetites
The four HL Multi-Index portfolios vary in their allocation to equities versus fixed income to match different risk appetites. The Adventurous portfolio is 100% invested in equities, while the Moderately Adventurous portfolio has an 80/20 split between equities and bonds. The latter aims for 70-90% of the volatility of equity markets. More conservative portfolios with higher bond allocations are also available.
A Comprehensive Range of Solutions
With the launch of these passive portfolios, Hargreaves Lansdown now offers a comprehensive selection of ready-made investment solutions comprising both active and passive funds. Investors have access to the investment expertise of BlackRock, the world’s largest asset manager, combined with the UK’s largest investment platform for retail investors. The passive options complement Hargreaves Lansdown’s goal of providing investors with investment choices to suit their needs and risk tolerances.
In summary, the new passive model portfolios from Hargreaves Lansdown and BlackRock provide investors with low-cost, ready-made investment solutions to match a range of risk appetites. They meet the growing demand for index fund investing from Hargreaves Lansdown clients and expand the options available to investors on the platform.
Details on the New HL Multi-Index Portfolios
Low-Cost, Passively Managed Solutions
In response to the rising popularity of index funds and ETFs among its clients, Hargreaves Lansdown has launched four new passively managed multi-asset model portfolios in partnership with BlackRock. Providing retail investors with simple, low-cost investment options, these portfolios hold index funds and ETFs from BlackRock’s range. Two portfolios already power Hargreaves Lansdown’s default investment strategy for its ready-made SIPP product launched in November 2023.
Four Risk-Rated Options
The new HL Multi-Index portfolios offer four risk-rated options to suit investors with different risk appetites. The Adventurous portfolio holds 100% in equities, targeting investors comfortable with full equity market exposure and volatility. The Moderately Adventurous portfolio holds an 80/20 split between equities and fixed income, aiming for 70-90% of equity market volatility. The Cautious and Defensive portfolios provide higher fixed income allocations for more risk-averse investors.
Complementing the Active Portfolio Range
The new passive portfolio range complements Hargreaves Lansdown’s existing actively managed model portfolios, the HL Managed range, launched in 2023. Together, these ranges provide Hargreaves Lansdown clients with a comprehensive selection of ready-made investment solutions, both active and passive, to suit their needs and risk profiles. As Chief Investment Officer Toby Vaughan stated, “Our new ready-made multi-index investment portfolios add further choice for investors to meet that demand and are an easy cost-efficient solution for those looking to get started with investing.”
Responding to Trends
The launch of these passively managed model portfolios responds to the strong and growing demand for low-cost index funds and ETFs among Hargreaves Lansdown clients. Over the past seven years, investment in index funds on the Hargreaves Lansdown platform has increased by over 150%. In just the last two years, the number of clients using index funds as their primary investment has grown by 80%. The new HL Multi-Index range provides these clients with a simple, affordable investment solution tailored to their needs.
Hargreaves Lansdown Responds to Growing Demand for Low-Cost Investing
In response to the substantial increase in clients choosing index funds as their primary investment vehicle, Hargreaves Lansdown has partnered with BlackRock to launch four new multi-asset index portfolio funds. As Vaughan noted, over the past seven years, HL clients’ investment in index funds has risen by over two and a half times. More specifically, over the past two years, the number of clients using index funds as their main investment has grown by 80%.
Meeting Client Demand for Passive Investing Options
To meet this growing demand, HL has created a range of ready-made multi-index investment portfolios to provide clients with a simple, low-cost way to get started with investing. The portfolios, which include an adventurous option with 100% equity exposure and a moderately adventurous choice with an 80/20 stock-bond split, leverage BlackRock’s index funds and ETFs to keep fees low.
Complementing Existing Active Offerings
While the new passive range aims to give clients more choice and control over fees, it complements rather than replaces HL’s existing active fund options. For example, last year HL launched HL Managed, a suite of model portfolios comprised of actively managed funds. According to Vaughan, the new multi-index portfolios, combined with the HL Managed range, provide a “comprehensive selection of ready-made solutions for UK retail investors.”
Meeting Investors at Every Stage
More broadly, the launch of the multi-index portfolios is part of HL’s strategy to provide suitable investment options for clients at every experience level. As Vaughan noted, HL strives 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.” By offering both active and passive choices, HL can meet the diverse needs and preferences of its client base.
The new passive range provides a simple, low-cost way for investors to access BlackRock’s index funds through HL’s platform. For clients seeking ready-made passive portfolios, the multi-index offerings provide an easy entry point into investing at a competitive price. At the same time, the portfolios complement HL’s existing active fund range, giving clients options for every risk tolerance and budget. Overall, the launch highlights HL’s commitment to offering suitable investment solutions for investors at every life stage.
Conclusion
In summary, the new BlackRock-powered multi-asset index portfolios from Hargreaves Lansdown provide investors with a simpler, more cost-efficient way to access the market. With index investing continuing to rise in popularity, these new offerings allow both beginning and experienced investors to capitalize on this trend. By leveraging BlackRock’s expertise in passively managed funds and ETFs, Hargreaves aims to attract clients seeking an easy, diversified solution. This launch represents the next phase in the evolution of their product suite, expanding the choices available to match clients’ investing needs and styles. For investors drawn to index funds, these multi-asset model portfolios offer a compelling new option.