HL Multi-Manager breaks into top 10 thanks to UK income

The £96.12m fund is ranked the ninth in the Investment Management Association’s Mixed Investment 20-60 per cent Share sector, where the average three-year return comes in at 18.38 per cent.

The fund had been managed by Lee Gardhouse since 2006, with David Smith joining two years later.

It aims to offer a “one-stop shop” for investors seeking bond and equity exposure, according to the fund supermarket’s own online research notes.

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The fund’s position in the UK is very strong at 60.39 per cent but the US and Eurozone also make an appearance at 8.22 per cent and 13.73 cent respectively.

Although the fund is aiming for both capital growth and income, most of its top ten holdings are driven by the latter. Its biggest holding is Artemic Income at 6.9%. Equity-laden funds like this sit alongside others such as the Fidelity MoneyBuilder, focused on corporate and government bonds, in the Hargreaves top ten holdings.

Its TER is 1.75 per cent and the AMC is 1 per cent. The minimum initial investment is £500 and additional savings of £250 are also permitted. The fund is also available to Isa investors.

Despite taking a similar income-focused approach, the L&G Multi-Manager Income fund has only managed a three year return of 6 per cent.

The fund, managed by Alan Thein and Tim Gardner since 2008, is far bigger at £216.86m but is ranked 108th in the same sector.

Around a quarter, 25.33 per cent, of the fund is invested in the UK and 17.06 per cent is held in the US.

Artemis Income once again crops up in the fund’s top five holdings at 8.84 per cent but the top two spots are taken by Nordea-1 Global High Yield Bond, at 13.01 per cent, and JOHCM Japan at 11.61 per cent. The Nordea fund puts great store by high-yield bonds, while the JOHCM concentrates on promising Japanese stocks.

The L&G fund’s TER is also higher, at 2.14, and the AMC is 1 per cent. An initial investment of at least £500 is required and the fund can be accessed through an Isa.

Juliet Schooling Latter, head of research at London-based Chelsea Financial Services, said: “The Hargreaves Lansdown fund has a much bigger chunk in the UK and a smaller amount invested in Asia than the L&G fund. These two factors may have made all the difference, given the resurgence of the UK and the comparative weakness in emerging markets of late.”

HL Multi-Manager Equity & Bond Trust
Artemis Income - 6.9%
IP Income - 6.8%
Fidelity MoneyBuilder Income - 6.8%
Kames Investment Grade Bond - 6.4%
Threadneedle UK Eq Alpha - 6.2%

L&G Multi Manager Income
Nordea-1 Global High Yield Bond - 13.01%
JOHCM Japan GBP A Hdg - 11.61%
Artemis Income - 8.84%
Henderson European Special Situations - 7.29%
Veritas Global Equity Income - 7.12%