MOST
POPULAR FUNDS
The most popular funds with HL clients over the last five years.
KATE MARSHALL
Senior Investment Analyst
TOM MILLS
Investment Analyst
The past year has been so eventful, it’s
almost possible to forget events other
than the coronavirus crisis.
But a look over the past five years reminds
us a lot has happened. The UK voted to
leave the EU, then we watched what felt
like never-ending negotiations. Boris
Johnson beat Jeremy Corbyn to become
the UK’s next Prime Minister, while Donald
Trump was elected the 45th US President,
serving one term. Over this time, we’ve
seen several events that once seemed
impossible, become possible.
Investors were also in for a rollercoaster
ride. Global stock and bond markets have
generally performed well over recent
years, though there have been some big
setbacks along the way.
Investors were also in
for a rollercoatster ride.
We’ve taken this as an opportunity to look
at some of the most popular investments
with investors. The table to the right
shows the 10 most popular funds with
HL clients over the past five years. These
funds are provided for your interest, but
you should choose investments based on
your own objectives and attitude to risk.
FUND
KEY INVESTOR
INFORMATION
Baillie Gifford American
KII
Baillie Gifford
Global Discovery
KII
Baillie Gifford Managed
KII
Fundsmith Equity
KII
HL Multi-Manager
High Income
KII
HL Select Global
Growth Shares
KII
Legal & General
KII
International Index Trust
Legal & General US Index KII
Share markets have produced some of
the strongest returns over that time so
perhaps it’s not a surprise to see funds
that invest in shares featuring prominently.
However, what’s popular now won’t
necessarily be popular or perform well in
future. A well-diversified portfolio should
include a mix of assets, such as shares and
bonds, as well as a mix of geographies and
investment styles.
Here we take a closer look at four of the
most popular funds.
Lindsell Train
Global Equity
KII
Rathbone Global
Opportunities
KII
Source: Hargreaves Lansdown, 6 April 2016 –
5 April 2021. Based on net fund purchases.
This article isn’t personal advice or
a recommendation to invest. All
investments can fall as well as rise in value,
so you could get back less than you invest.
If you’re not sure an investment is right for
you, please seek advice.
Investing in these funds isn’t right for everyone. Investors should only invest if the fund’s objectives are aligned with their own,
and there’s a specific need for the type of investment being made. Investors should understand the specific risks of a fund before
they invest, and make sure any new investment forms part of a diversified portfolio.
IMPORTANT NOTES:
This factsheet is not personal advice or a recommendation to buy, sell or hold any investment. If investors are not sure of the suitability
of an investment for their circumstances, they should seek advice. Yields are variable and not guaranteed. Past performance is not a
guide to the future and investments rise and fall in value so investors could make a loss.
Information correct as at 17 May 2021 unless otherwise stated. This publication is issued by Hargreaves Lansdown Asset Management
Ltd, One College Square South, Anchor Road, Bristol BS1 5HL who are authorised and regulated by the Financial Conduct Authority.
BAILLIE GIFFORD
MANAGED
This fund invests across six major
investment areas: shares in the UK,
the US, Europe, Asia and the emerging
markets, and bonds. It provides a huge
amount of diversification in one fund.
You should be aware that the fund’s
investments in emerging markets add risk.
The team behind this fund is made up of
eight experienced investors who are all
experts in their fields. Iain McCombie and
Steven Hay have been the fund’s lead
managers since November 2012. The
other six managers are representatives of
the fixed income, US, Europe, emerging
markets and developed Asia equity
teams. To choose investments they draw
on the research and analysis of their
colleagues in their respective teams,
but also on the best investment ideas of
around 100 investment managers and
analysts at Baillie Gifford. This fund has a
growth style that has benefitted its recent
performance, but this style can come in
and out of favour, as we have seen
more recently.
The managers like to keep things simple.
They tend to invest around 75% of the
fund in shares because they think shares
will be the main driver of returns over the
long run. The rest is invested in bonds
and cash with the aim to dampen volatility
and add diversification. The fund may also
invest in derivatives, which can add risk.
Please note the fund currently holds
shares in Hargreaves Lansdown PLC.
FIND OUT MORE ABOUT
BAILLIE GIFFORD MANAGED,
INCLUDING CHARGES
VIEW THE KEY
INVESTOR INFORMATION
ANNUAL PERCENTAGE GROWTH (%)
Jul 2016 –
2017
Jul 2017 –
2018
Jul 2018 –
2019
Jul 2019 –
2020
Jul 2020 –
2021
Baillie Gifford
Managed
17.6
10.8
9.9
14.7
24.1
IA Mixed
Investment
40-85% Shares
11.7
5.7
5.1
-3.1
18.1
Past performance isn’t a guide to the future. Source: Lipper IM to 31 July 2021
They tend to invest around
75% of the fund in shares
because they think shares will
be the main driver of returns
over the long run.
LEGAL AND
GENERAL US INDEX
The US is the largest market in the world
and is home to many world-leading
businesses. This fund is a low-cost
option for accessing a broad range of US
companies. Legal & General has been
running index tracker funds longer than
most. It’s also one of the largest providers
of tracker funds in the UK – that means it’s
got the resources and expertise to track
indices as closely as possible, and the
scale to keep charges to a minimum.
The fund aims to track the performance of
the FTSE USA Index by investing in every
company in that index. It’s currently made
up of around 600 companies, focused
on sectors such as technology, financials
and consumer services. While the fund
diversifies across the US, technology
companies make up around 30% of the
fund. Derivatives may be used to help
manage the fund efficiently, which can
add risk. However, these usually make up a
very small part of the portfolio.
FIND OUT MORE ABOUT
LEGAL & GENERAL US INDEX,
INCLUDING CHARGES
VIEW THE KEY
INVESTOR INFORMATION
The fund aims to track
the performance of
the FTSE USA Index
by investing in every
company in that index
HL SELECT GLOBAL
GROWTH SHARES
This fund was launched in May 2019 and
invests in around 30-40 global companies,
chosen by the HL Select team. This is
a concentrated approach where each
holding can make a real difference to
performance, though it increases risk. The
management team looks for companies
with the potential for long-term durable
growth. They invest mostly in developed
markets but can also invest in higher-risk
emerging markets.
The managers like businesses with quality
attributes including exceptional products
and services, recurring revenue, high
profit margins and returns on capital,
and strong cash flows. They also look
for companies with little or no debt, and
management with the vision to remain at
the forefront of their industries. They also
have the freedom to invest in higher-risk
smaller companies. They believe these
types of businesses should have the ability
to grow year after year, and to be resilient
when conditions are less favourable.
The HL Select Funds are run by our sister
company Hargreaves Lansdown Fund
Managers Ltd.
FIND OUT MORE ABOUT THE
HL SELECT FUND RANGE
FIND OUT MORE ABOUT HL
SELECT GLOBAL GROWTH
SHARES, INCLUDING CHARGES
VIEW THE KEY
INVESTOR INFORMATION
RATHBONE GLOBAL
OPPORTUNITIES
For this fund, manager James Thomson
seeks companies across the globe that
offer superior sales and profits growth,
compared with their competitors.
Thomson is one of only a few global fund
managers to show they can pick great
companies and perform better than the
broad global stock market over the long
term. We think he has the potential to
repeat this success in future, although
there are no guarantees and this ‘growth’
style of investing won’t always be in favour.
Remember past performance isn’t a guide
to future returns.
His success can be put down to a
straightforward, disciplined approach,
and a willingness to view the world a
little differently. He looks for easy-tounderstand businesses that can grow
to dominate their industry and defend
themselves from competition. He’ll
also search off the beaten track to find
companies with superb potential that
might be overlooked by other investors.
Thomson has the flexibility to invest in
smaller companies and emerging markets
which are higher-risk areas but he
generally avoids these as he thinks they’re
too risky compared to other areas.
Thomson is one of only a few
global fund managers to show
they can pick great companies
and perform better than the
broad global stock market
over the long term.
ANNUAL PERCENTAGE GROWTH (%)
Jul 2016 –
2017
Jul 2017 –
2018
Jul 2018 –
2019
Jul 2019 –
2020
Jul 2020 –
2021
Rathbone Global
Opportunities
18.4
17.9
13.4
13.7
25.7
FTSE World
18.2
12.4
11.0
0.2
28.0
IA Global
17.7
10.7
9.7
0.3
27.0
Past performance isn’t a guide to the future. Source: Lipper IM to 31 July 2021
FIND OUT MORE ABOUT
RATHBONE GLOBAL
OPPORTUNITIES, INCLUDING
CHARGES
VIEW THE KEY
INVESTOR INFORMATION
REASONS TO
BUY FUNDS
IN THE HL ISA…
Whether you’re a first time or experienced fund investor, we can help you.
With HL, you’ll get all the tools and information to make picking funds for your ISA
simple so you can hopefully grow your money for the future and reach your goals.
1
2
3
Great value – there’s no charge
to buy and sell funds in your ISA and
you’ll never pay more than 0.45%
per year to hold funds with us. Any
investments you choose will have
additional charges. View our charges
Discounts on popular UK funds
– you’ll benefit from paying lower annual
fund charges with some of the UK’s
best fund managers.
Wide investment choice – you’ll
have the freedom to invest almost
anywhere you like. Choose from over
3,000 funds across the most popular
sectors in the UK and abroad.
4
5
6
Expert investment ideas
– our experts spend thousands of
hours analysing investments each
year to help give you the best chance
to grow your money.
Low minimum investment
– start investing in funds from just
£100 or £25 per month.
More control – manage your ISA
and other investments how you want:
online, by phone, by post or using the
HL app.
DISCOVER MORE
ABOUT THE HL STOCKS
AND SHARES ISA
0821