Hargreaves Lansdown Adds BNY Mellon Multi-asset Fund To Wealth Shortlist

The fund is managed by Simon Nichols, who took over as lead manager in 2017, and focuses on investing in global companies with good long-term prospects, using bonds and cash to act as diversifiers.

According to Hal Cook, senior investment analyst at Hargreaves Lansdown, Nichols "favours the shares of established companies with competitive advantages, that often pay a dividend".

He added the fund could "diversify an investment portfolio focused on growth, or a portfolio focused on company shares ", as well as providing an exposure to UK global businesses with its large-cap focus.

Typically 70-80% of the fund is invested in equities, and Cook said it leaned towards large, established businesses that were cash generative, due to the preference for dividends.

Lee Gardhouse departs Hargreaves Lansdown after 28 years

The fund has returned 43.8% over the last five years, compared to the IA Mixed Investment 40-85% Shares benchmark gain of 16.3%, according to data from FE fundinfo.

Cook concluded: "We like the cautious nature of the approach and the straightforward way that Nichols and the team look to invest.

"Our conviction lies with Nichols who has built a strong track record in multi-asset investing, which gives us confidence in the fund's long-term prospects. Though as always, there are no guarantees."

 

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