The UK’s largest fund supermarket Hargreaves Lansdown has added the multi-asset income fund Ninety One Diversified Income, to its best-buy list.
Co-managed by John Stopford and Jason Borbora-Sheen since 2012, the £844.9m fund is primarily defensive and aims to be less volatile than 50% of the FTSE all-share index over the long term.
While the fund invests mainly in bonds, it also has exposure to shares and investment trusts and groups them based on three main categories of growth, defensive and uncorrelated investments.
Hal Cook, senior investment analyst at Hargreaves Lansdown, said the firm’s conviction lies with Stopford and his “vast experience in bond investing”, although he noted that the firm holds Borbora-Sheen “in high regard” and his presence should “reduce the key person risk associated with Stopford over time”.
This strategy has led to consistent long-term success, with Ninety One Diversified Income ranking within the top quartile of the IA Mixed Investment 0-35% Shares peer group over three and five years. Across both periods, the portfolio was one of the five best performers in the whole sector.
Performance of the fund versus the sector over 5yrs
Source: FE Analytics
Cook said: “We think this would be a great option for investors looking to supplement their retirement income, or for more cautious investors looking for an alternative to cash as rates fall.
“The fund could provide diversification to an investment portfolio focused on growth or be a useful addition to a portfolio focused on providing an income.”
Ninety One Diversified Income is also included on the FE Investments Approved List.