Hargreaves Lansdown’s five funds for 2022 | Trustnet (2024)

15 December 2021

Emma Wall outlines the firm’s five best fund picks for the year ahead, focusing on investors’ biggest needs.

Hargreaves Lansdown’s five funds for 2022 | Trustnet (1)

By Jonathan Jones,

Editor, Trustnet

Income funds and recovery stocks are the main ways analysts at the UK’s largest fund platform, Hargreaves Lansdown, are approaching investing in 2022.

Emma Wall, head of investment analysis and research at the firm, said income is “always a focus” for investors using its platform, suggesting both a global and UK income fund.

First up is the £1.3bn Artemis Global Income, managed byJacob de Tusch-Lec and James Davidson. The managers look for companies with the potential to earn a lot of cash through revenues that can be then used to pay dividends.

“They look beyond the usual names that make up many global income portfolios and often invest in out-of-favour companies at attractive prices, such as those that are more sensitive to the health of the economy and those lower down the size spectrum, including higher-risk smaller companies,” she said.

Over the past year the fund has been a top-quartile performer, making 23.2%, beating both the MSCI ACWI benchmark index and the average IA Global Equity Income peer, as the below chart shows.

Total return of fund vs sector and benchmark over 1yr

Hargreaves Lansdown’s five funds for 2022 | Trustnet (5)

Source: FE Analytics

It also has a strong long-term track record, making the fourth-highest returns in the sector over 10 years, although it has failed to beat the index over that period.

Another key theme is the rise of environmental, social and governance (ESG), with investors wanting their cash to do good as well as make strong returns.

As such, the second income fund has an ethical tilt.Trojan Ethical Income “could bring diversification to an income-focused portfolio or be a good addition to a responsible investment portfolio built to provide income,” said Wall.

The £331 fund, managed by Hugo Ure, sits in the IA Unclassified sector but is a UK equity portfolio that is centred around providing sustainable income from ethical companies.

The manager can invest up to 30% of the portfolio in overseas stocks however, meaning it has a larger remit than those in the IA UK Equity Income sector, which are required to have no more than 20% in overseas shares.

“He doesn’t invest in companies deemed unethical, such as those with significant involvement in armaments, tobacco, and fossil fuels, although the fund is still diversified across a range of industries, with the manager tending to find opportunities in consumer goods, healthcare and business software firms,” said Wall.

If there are stocks that require improvement, however, he is willing to engage rather than outright banning companies from the portfolio.

Staying with ESG, Wall suggested , a passive fund that invests across developed stock markets while being mindful of ESG issues, focusing on sectors such as technology, pharmaceuticals and financials.

“Given the focus on developed markets, it could help diversify funds focused on emerging markets and is a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way,” she said.

For risk averse investors, thePyrford Global Total Return makes for a good option, she said, as the fund can invest flexibly, but aims to keep things simple by focusing on a mix of shares, government bonds and cash, investing in companies across the globe, with the option to invest in emerging markets.

The fund sits in the IA Flexible Investment sector, where funds typically have a large allocation to equities. But the £2bn fund has its main weighting in bonds, more than 60%, versus just 37% in stocks, which explains its consistent fourth-quartile performance among its peers over one, three, five and 10 years.

Its main aim is to not lose money, making it akin to an absolute return fund. Indeed, the fund has the lowest maximum drawdown (5%) of any of its peers over the past decade and has been the least volatile.

Finally, for those investors on the opposite end of the risk spectrum, “emerging markets offer opportunities for long-term growth”, Wall said.

JPM Emerging Marketsis the pick here. Managed byLeon Eidelman and Austin Forey, the fund is “well-placed to take advantage of the changes taking place across these markets”, Wall said.

“Investing in emerging markets comes with risks, however, especially as their political and regulatory environments are less evolved, or different, than developed markets, creating more volatility than regulated markets,” she added.

Total return of fund vs sector and benchmark over 10yrs

Hargreaves Lansdown’s five funds for 2022 | Trustnet (6)

Source: FE Analytics

The £3.2bn fund has made top-quartile returns over three, five and 10 years, but had a poor past 12 months as its high allocation to China (42.8%) has weighed it down. Indeed, over the past year the fund is down 5%.

FundSectorFund sizeManager name(s)YieldOCF
Artemis Global IncomeIA Global Equity Income£1,314mJacob de Tusch-Lec, James Davidson2.25%0.87%
JPM Emerging MarketsIA Global Emerging Markets£3,224mAustin Forey, Leon Eidelman0.08%1.09%
L&G Future World ESG Developed IndexIA Global£877mIndex Fund Management Team1.10%0.25%
Pyrford Global Total ReturnIA Flexible Investment£2,032mTony CousinsN/A1.09%
Troy Trojan Ethical IncomeIA Unclassified£331mHugo Ure1.97%1.02%


2022 fund picks ESG Fund Inspiration Funds insights income investing Investing in Funds for Retirement ISA section


Pyrford Global Total Return (Sterling) Artemis Global Income Trojan Ethical Income JPM Emerging Markets


Jacob de Tusch-Lec Leon Eidelman Austin Forey Hugo Ure James Davidson


Artemis Fund Managers Limited JP Morgan Pyrford International Troy Asset Management


IA Flexible Investment IA Global Equity Income IA Global Emerging Markets IA Unclassified

More Headlines

  • US equities break records: Can the bull market continue? 23 January 2024
  • Fidelity’s Select 50: The new entrants added last year 23 January 2024
  • Fidelity poaches from Liontrust and Ninety One to replace Podger 23 January 2024
  • The young UK funds shooting the lights out over 3 years, and those that missed the mark 23 January 2024
  • Peel Hunt’s trusts to invest for income 22 January 2024

I'm an investment expert with extensive knowledge in fund analysis and market trends. My understanding of the intricacies of the financial world positions me as a valuable source for investment insights. Now, let's delve into the concepts mentioned in the article from December 15, 2021, outlining Hargreaves Lansdown's five best fund picks for 2022, with a focus on income funds and recovery stocks.

  1. Artemis Global Income Fund:

    • Managed by Jacob de Tusch-Lec and James Davidson.
    • Strategy involves seeking companies with the potential to generate cash for dividends, often investing in out-of-favor companies.
    • Performance has been top-quartile over the past year, beating benchmark indices.
  2. Trojan Ethical Income Fund:

    • Managed by Hugo Ure.
    • This fund has an ethical tilt, avoiding investments in companies involved in armaments, tobacco, and fossil fuels.
    • Diversified across industries with a focus on consumer goods, healthcare, and business software firms.
    • Allows engagement with companies for improvement rather than outright banning.
  3. L&G Future World ESG Developed Index:

    • A passive fund with a focus on environmental, social, and governance (ESG) issues.
    • Invests across developed stock markets, emphasizing sectors such as technology, pharmaceuticals, and financials.
    • Suggested as a way to diversify funds focused on emerging markets.
  4. Pyrford Global Total Return Fund:

    • Positioned as a good option for risk-averse investors.
    • Aims to keep things simple by focusing on a mix of shares, government bonds, and cash.
    • Main weighting in bonds (more than 60%), with consistent fourth-quartile performance and low volatility.
    • Aims to avoid losses, resembling an absolute return fund.
  5. JPM Emerging Markets Fund:

    • Managed by Leon Eidelman and Austin Forey.
    • Positioned for long-term growth in emerging markets.
    • Acknowledges the risks associated with emerging markets, including political and regulatory volatility.
    • Has shown top-quartile returns over three, five, and 10 years, but faced challenges in the past 12 months.

The article emphasizes income as a key focus for investors in 2022 and highlights the importance of considering environmental, social, and governance (ESG) factors in investment decisions. The fund selections cater to investors with varying risk appetites, from the risk-averse Pyrford Global Total Return to the higher-risk JPM Emerging Markets for those seeking opportunities in emerging markets.

Hargreaves Lansdown’s five funds for 2022 | Trustnet (2024)


Top Articles
Latest Posts
Article information

Author: Margart Wisoky

Last Updated:

Views: 6074

Rating: 4.8 / 5 (58 voted)

Reviews: 81% of readers found this page helpful

Author information

Name: Margart Wisoky

Birthday: 1993-05-13

Address: 2113 Abernathy Knoll, New Tamerafurt, CT 66893-2169

Phone: +25815234346805

Job: Central Developer

Hobby: Machining, Pottery, Rafting, Cosplaying, Jogging, Taekwondo, Scouting

Introduction: My name is Margart Wisoky, I am a gorgeous, shiny, successful, beautiful, adventurous, excited, pleasant person who loves writing and wants to share my knowledge and understanding with you.