HL MULTI-INDEX CAUTIOUS

The HL Multi-Index Cautious fund is the lowest risk of the range. On a scale of one to ten, if investing entirely in global shares is a ten, this fund would receive a rating of four.

HL Multi-Index Cautious

Risk rating (4/10)

Compared to:

HL Growth Fund (Default investment Fund)

Risk rating (8.5/10)

How does HL Multi-Index Cautious work?

The fund mainly invests in a range of bonds, and usually holds around a third of your money in global company shares. This includes some higher risk emerging market shares, although typically a smaller proportion compared to the higher risk funds in the Multi-Index range. This fund favours investing in bonds issued by governments in developed countries, which are usually some of the lowest risk bonds available. To further reduce some of the ups and downs of investing, the fund retains some exposure to certain higher risk types of bonds too. The fund is expected to capture around 40% of the ups and downs of the stock market, although there are no guarantees. View the HL Multi-Index Cautious factsheet Download HL Multi-Index Cautious Key Investor Information Document

Expected returns

We forecast a full range of outcomes for markets, allowing us to calculate the most likely potential returns for this fund, as well as good and bad outcomes. The potential outcomes you could expect from this investment are based on you investing £10,000 as a lump sum for 10 years:

HL Multi-Index Cautious

Bad outcome
Average outcome
Good outcome
£ 12,375.18
£ 15,644.97
£ 18,866.36

Compared to:

HL Growth Fund (Default investment fund)

Bad outcome
Average outcome
Good outcome
£ 11,171.50
£ 19,716.15
£ 28,176.94

Where does HL Multi-Index Cautious invest?

Equities

Developed Markets
23.80%
Emerging Markets
4.50%

Fixed Income

Global Corporate Bonds
27.00%
Government Bonds
36.69%
Higher Risk Bonds
8.00%
Seeking Growth
36.30%
Seeking Stability
63.70%

Equities

UK Equity
6.2%
Developed Ex UK Equity
17.5%
Emerging Market Equity
4.5%
Global Smaller Companies
0.0%

Fixed Income

Global Corporate Bonds
27.0%
Global Sovereign Bonds
32.7%
Global Inflation Linked Government Bonds
4.0%
Global High Yield
4.0%
EM Sovereign Bonds ($)
1.3%
EM Sovereign Bonds LC
1.3%
EM Corporate Bonds ($)
1.3%

Charges

Yearly charge based on an example £1,000 investment and a maximum HL platform fee of 0.45% and assuming no growth.

HL Multi-Index Cautious

Fund charge (0.30%)
HL platform fee (0.45%)
Total annual charge (0.75%)
£ 3.00
£ 4.50
£ 7.50

Compared to:

HL Growth Fund (Default investment fund)

Fund charge (0.10%)
HL platform fee (0.45%)
Total annual charge (0.55%)
£ 1.00
£ 4.50
£ 5.50

See how the costs will affect your investment in detail

The fund charge is taken automatically from the money within your pension. It includes all fund expenses but transactions within the funds can have additional costs. These costs are incurred by all funds when investments within them are bought or sold. All these costs are reflected in fund charges.

The HL platform fee covers the automatic changing of funds within your pension when needed and the cost of looking after your investments. This won’t exceed 0.45% per year and is taken from your pension once a month.

The funds are administered by Hargreaves Lansdown Asset Management Ltd and the underlying funds are managed by Hargreaves Lansdown Fund Managers Ltd, both part of the Hargreaves Lansdown Group. If you invest, HL will benefit from the fund charge, as well as the HL platform fee.