Adventurous Income

HL PORTFOLIO +
May 2018

PORTFOLIO OBJECTIVE THE INVESTMENT MANAGERS

Aims to maximise income and capital
growth by focusing on the stock market.
LEE GARDHOUSE ELLEN POWLEY
An adventurous portfolio designed
Chief Investment Fund Manager
to generate a rising dividend income,
Officer
alongside capital growth. The focus is
on UK shares, but it also includes some
investments overseas.
Net yield, variable, and not a reliable
3.12
indicator of future performance % ROGER CLARK
DAVID SMITH
Fund Manager Fund Manager
Portfolio Holdings (Target %)

HL Multi-Manager Income & Growth 80

HL Multi-Manager Special Situations 20
Portfolio’s Top Ten
Underlying Holdings (%)
Jupiter Income
JO Hambro UK Equity Income
Artemis Income
LF Woodford Equity Income
Marlborough Multi Cap Income
Threadneedle UK Equity Alpha
Income
Majedie UK Income
Jupiter Asian Income
Findlay Park American
Man GLG Japan CoreAlpha
Investment research is a core part of our business. We believe exceptional fund managers
are few and far between, but can be identified using a combination of rigorous statistical
analysis and face-to-face meetings.
HOW DO WE SELECT INVESTMENTS?
13.2
Our proprietary, in-house quantitative model looks at over 2,000 funds and allows us to
13.0 see more than just past performance. It enables us to drill down and decipher why a fund is
at the top (or bottom) of performance tables. A key way to judge a manager is to find out
12.9
if they consistently add value with their stock selection. In other words, do they do better
12.1 than we would expect when considering their investment style? That is one of the key
things we look for when we evaluate managers.
8.2
8.2 MORE THAN JUST NUMERICAL ANALYSIS
In addition to number crunching, we have unrivalled access to fund managers and
8.1 conduct hundreds of face-to-face meetings each year. These meetings explore the
manager’s philosophy, process, team and incentivisation, among other things. We do all
3.1
this because we want our clients to have exposure only to the limited pool of exceptional
1.8 talent available. Each fund goes through a rigorous selection process. We constantly
monitor funds and regularly review sectors to ensure you’re invested only in what we
1.6 believe are the very best funds.

Backtested, And Since Launch, Performance

l Portfolio +54.8% l Benchmark +50.6% l Cash* +1.9% The portfolios have been available since 03 June 2015. We have
60% added the performance since launch as indicated by the vertical
line. The Multi-Manager funds have been trading since at least 2009
and in most cases much longer, this has enabled us to backtest the
40% performance data to give an indication of the likely performance
pre-launch. We have selected a five year performance time frame
20%
which includes backtested performance up to the 03 June 2015,
and actual performance since the 03 June 2015.

0% ABOUT THE BENCHMARK

The Investment Association (IA) is the UK fund industry’s body.
This portfolio uses a benchmark made up of two IA sectors to
-20%
Apr Apr Apr Apr Apr Apr reflect the benchmark of the underlying Multi-Manager funds. The
- 13 - 14 - 15 - 16 - 17 - 18 benchmark comprises 80% IA UK Equity Income sector and 20%
* Bank of England base rate net of basic rate tax until 5th April 2016, IA Global sector.
gross thereafter. Past performance is not a guide to future returns.
Year on year performance (%)
Backtested Performance Actual Performance Rolling
Apr 13 Apr 14 Apr 15 - 3rd 3rd June 15 Apr 16 Apr 17 Performance
– Apr 14 – Apr 15 June 15 – Apr 16 – Apr 17 – Apr 18 – 5 Years
Portfolio for Growth and Income 13.2 13.6 1.7 -4.8 18.1 5.3 54.8
Benchmark 12.0 9.8 2.2 -4.4 18.6 5.8 50.6

SEE IMPORTANT INFORMATION >>

Adventurous Income
HL PORTFOLIO +
May 2018
Asset Allocation (%)
l Equity 95.2
l Cash 2.5
l Other 2.2
l Fixed 0.1
Please note figures may not add up to 100% due to rounding.
MARKET REVIEW & OUTLOOK
Speculation over the pace of interest rate
rises and the withdrawal of Quantitative
Easing hit investor confidence early in
2018. This caused volatility in global
stock markets and they delivered mixed
results over the three months to 30 April
2018. UK and Japanese markets were
among the top performers for UK-based
investors, while US, Asian and European
markets lost money.
An investment in River & Mercantile UK
Dynamic Equity was sold following the
departure of experienced fund manager
Philip Rodrigs.
The proceeds were used to make a new
investment into the Jupiter Global Value
Equity Fund. This fund gives experienced
investor Ben Whitmore the flexibility to
invest in outstanding companies wherever
he finds them. We think this fund has the
potential to generate strong returns
over the long-term, although there are
no guarantees.
We also added to a broad spread of
existing investments including Comgest
Growth Emerging Markets, Man GLG
Japan CoreAlpha, Baring Europe Select
and Lindsell Train Global Equity.
IMPORTANT INFORMATION
Factsheet correct as at 30/4/18. All
investments and any income from them
can fall and rise in value so you may get
back less than you invest. Neither income
nor capital are guaranteed, unlike a bank or
building society account. Investing is not
recommended for less than 5 years. This
portfolio may invest in funds with exposure
to overseas markets, including emerging
Hargreaves Lansdown Asset Management Ltd, One College Square South, Anchor Road, Bristol, BS1 5HL.
Authorised and regulated by the Financial Conduct Authority. Enquiries: 0117 900 9000
Geographical equity allocation (%)
Underlying holdings in focus
MARLBOROUGH MULTI CAP INCOME
This fund combines the potential for strong
capital growth traditionally associated with
smaller companies, with the attraction of
a regular income. Its bias towards higher-
risk small and medium-sized companies
differentiates the fund from many of its
peers in the UK Equity Income sector, which
tend to focus on a more limited number
of larger, dividend-paying companies. The
fund is managed by Siddarth Chand Lall with
the support of Marlborough’s UK smaller
companies team, who we have long held in
high regard.
CRUX EUROPEAN SPECIAL
SITUATIONS
Richard Pease is one of the most-
experienced investors in the European
sector. He focuses on world-class
businesses which may have originated
in Europe, but are internationally
competitive and operate on a global scale.
He specifically seeks companies able to
generate a large amount of cash with high
barriers to entry from competition. These
companies have the potential to prosper
in both good and bad times for the wider
economy. The manager has an exemplary
long-term track record and our analysis
attributes this to his ability to select
companies with outstanding prospects.
markets, and smaller companies. The
funds may also be able to use derivatives,
and invest in a concentrated number of
investments. Each of these factors adds risk.
For more details please see the key investor
information of the HL Multi-Manager Special
Situations and Income & Growth funds. This
portfolio has an ongoing charge of 1.35%
plus our platform charge of up to 0.45%
per annum. Source for all figures: Lipper IM/
l UK 78.1
l Europe 6.4
l US 5.5
l Emerging Markets 4.1
l Asia Pacific 3.2
l Japan 2.7
JOHCM UK EQUITY INCOME
Clive Beagles and James Lowen adopt
a contrarian investment approach and
aim to invest in companies they believe
have been overlooked and undervalued
by other investors. At present they
believe companies in the financials and
energy sectors look good value and this
is where the fund is currently biased. The
fund’s contrarian nature and bias towards
companies sensitive to the health of the
UK economy differentiates it from many
of its peers, in our view.
OLD MUTUAL UK SMALLER
COMPANIES FOCUS
The team at Old Mutual are among the
best smaller company fund managers, in
our view. They have a strong long-term
track record, which our analysis attributes
to their ability to select companies with
bright futures ahead of them. The team
aims to identify reasons why corporate
earnings could be better than expected
which, if correct, could lead to a rising
share price. While they primarily focus on
individual company analysis, they also take
into account their views on the
wider economy.
Hargreaves Lansdown, bid-to-bid pricing, net
income reinvested. This factsheet is not a
promotion of any funds profiled nor is
it personal advice. For more information
on these funds please see their key investor
information on our website. The HL Multi-
Manager funds are managed by our sister
company Hargreaves Lansdown Fund
Managers.
AI 05.18