Hargreaves Lansdown

Portfolio Management Service

0117 317 1690 | www.hl.co.uk

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As a testament to our excellent service, here are just a few of the awards received by Hargreaves Lansdown:

Recent awards include• Best Investment Platform – Online Personal Wealth

Awards• Best D2C Platform Award – Professional Adviser• Pension Provider of the Year – Pensions Age• Gold Trusted Merchant (based on client feedback) –

FEEFO

Back to back awards include• Best Direct Platform – The Platforum 2013 – 2015• Best SIPP Provider – What Investment 2007 – 2016• Gold Standard for Individual Pensions – Gold

Standard Awards 2013 – 2015• Best Fund Supermarket – What Investment 2014, 2015• Best Pension Provider of the Year – Workplace Saving

& Benefits Award 2014, 2015• Gold Standard for Retirement – Gold Standard Awards

2014, 2015

If I would have made my own decisions about what to do with my pension, I would absolutely not be in the same place as I am today. I really am substantially better off. I don’t need to worry myself about any of it, I am kept up to date and I get a meeting every year. My adviser and fund managers do the rest so I can sit back and relax.” Mr Thorogood, Worcestershire

Since retirement I worried about making correct share dealing decisions in my Drawdown SIPP. Life is now less stressful with my investments professionally managed and spread across diverse markets that I had never considered.” Mr Robertson, Belfast

I am confident that my family’s financial assets are being cared for and managed in the best possible manner, minimising risk in what is a real minefield for most of us not directly involved in the financial markets.” Mr Fraser, Lanark

Important information Investments and the income from them can go down in value as well as up, and as such you may not get back the full amount invested. The past is not a guide to future performance. Tax rules can change and any benefits depend on personal circumstances. This guide and any figures included are correct as at 13 October 2016 .

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Introduction

Many investors find running their own portfolio a time-consuming and daunting prospect. Appointing a professional investment manager is often the preferred choice for those wanting peace of mind.

The best of what we offer

> Available exclusively through Hargreaves Lansdown’s Financial Advisers

> Expert research and investment teams with unrivalled access to fund managers

> Portfolio management and rebalancing through our discretionary service

> Additional expertise and oversight from our experienced Investment Committee

> Tax-efficient planning including ISAs, pensions and IHT planning

The Portfolio Management Service is our most comprehensive service, and is available exclusively through our financial advisers. It has been designed for investors lacking the time, inclination or expertise to manage their investment portfolios.

One of the benefits of this service is that there is always an expert looking after your money, beginning with our financial advisers. They will take the time to understand your situation as well as your financial goals to recommend a balanced portfolio, so your investments should be better placed to meet your long-term needs.

Your investment will be looked after on a discretionary basis by our experts. This service draws on the wealth of experience of our professional investment management, our highly qualified advisers, market-leading administration and our award-winning standards of service.

The portfolios have been built by our experienced investment managers, who work closely with our research analysts to continually find the best fund managers. The portfolios are constantly reviewed, changes are made when necessary, and the holdings are regularly rebalanced.

The peace of mind this service provides makes it extremely popular among our clients.

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Investing for a secure financial future

The Portfolio Management Service is the simplest way to take full advantage of our knowledge, resources, experience and expertise.

Our experienced investment managers work closely with our research analysts to find the best fund managers for our portfolios. We use detailed mathematical analysis to select a shortlist of funds. We then narrow down which fund managers and funds are likely to outperform their peers in the future and the suitability of these for our portfolios. The portfolios are constantly reviewed and rebalanced to maintain objectives. As with any investment, the value will fall as well as rise so you could get back less than you invest and the emphasis should be on the longer term. You will gain the reassurance that a team of investment experts and advisers are looking after your money and doing the hard work for you.

Clients often come to us because they understand the importance of investing for their future, but would rather leave the decision-making to investment professionals.

I can rely on my Hargreaves Lansdown adviser totally to deal with the money I haveinvested without havingto worry about it.” Mr Collins, Derbyshire

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A tried-and-tested investment philosophy

Everyone has heard the expression “don’t put all your eggs in one basket”. When it comes to investing, we feel it is an essential rule to follow.

Diversifying involves investing in different asset classes and sectors. Being in the best-performing sector may result in excellent returns one year, but it could end up at the bottom of the performance table the following year. Investors with diversified portfolios carry less risk and usually see more consistent and stable returns over time.

The decision over which investment to buy, and when, can be difficult. This is where our investment team can help. They strive to identify the highest-quality fund managers, and the culmination of their research results in a portfolio of high-conviction funds. Each portfolio is structured based on our understanding of how certain sectors complement one another. The overriding aim is to deliver the

best returns for the level of risk an investor has chosen to take.

Taking a long-term approach is also key to a successful investment. All investments suffer short-term periods of volatility, but selling an investment at its highest point and buying at its lowest is remarkably difficult to get right. Taking a short-term investment horizon heightens the potential for experiencing negative returns. In our view, riding out periods of volatility and adopting a longer time horizon is far more likely to deliver greater returns, although there are no guarantees.

The below graph compares the return of an example portfolio within

the Portfolio Management Service to cash and the sector average.

It assumes an investment over a five year period. Past performance

is not a guide to future returns. It should be remembered that cash

and investment are not directly comparable, cash is guaranteed not

to fall in value although will be impacted by the rate of inflation.

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Sep16

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Past performance is not a guide to future returns. Source: Lipper IM correct at 30/09/2016. The performance will vary dependent on the individual portfolio and underlying investments. The portfolio selected will depend on your objectives and attitude to risk.

Percentage growth from example portfolio within the Portfolio Management Service (PMS), cash and the sector average over a five year period

l Example portfolio within PMS l Sector average l Cash

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Our Investment Team

Our award-winning Investment Team use comprehensive research which allows them to take into account a combination of factors including each fund manager’s style and stock-picking ability as well as market trends.

Lee Gardhouse Chief Investment Officer

Lee Gardhouse is responsible for the Investment Team which manages both the Portfolio Management Service and the HL Multi-Manager fund range. Lee is an Associate of the Society of Investment Professionals and has been with Hargreaves Lansdown since 1995.

Mark Dampier Head of Research

Mark Dampier is head of our Research Team. Mark is regularly quoted in the financial press as his views on markets and funds are highly respected. Mark’s knowledge and insight into the markets and funds in particular complements the Investment Team’s analysis of portfolio holdings.

Hargreaves Lansdown Investment Management Team

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Key facts

• Researching investments for over 30 years

• 300 fund manager meetings held each year

• Almost 2,000 funds regularly reviewed

• Over 10,000 clients entrust us with more than £3 billion of their money using the Portfolio Management Service

• The Portfolio Management Service can be held within ISAs, pensions, offshore bonds and in a non-tax shelter account.

How we manage portfolios

We have been researching investments for over 30 years and in-house investment research is a core part of our business.

Regular rebalancing

Your investment objectives and level of risk are maintained over time by regular rebalancing. Major shifts in the markets can quickly change the risk profile of portfolios, which is why rebalancing is so important.

Remember, all investments can fall as well as rise in value, so performance is not guaranteed. You could get back less than you invest. Tax rules can change and any benefits depend on personal circumstances.

Selecting funds

Our in-house quantitative model allows us to monitor more than just the past performance of almost 2,000 funds. We regularly review sectors to ensure you’re invested in what we believe are the very best funds with the best suitability for the portfolios. Our unique modelling tool enables our Investment Team to make sense of why a fund is at the top (or bottom) of performance tables.

The team have unrivalled access to fund managers with over 300 face-to-face meetings taking place each year. If they’re performing well they need to know how managers plan to continue to do so; if they have performed poorly they need to know what the manager intends to do about it.

Putting portfolios together

The funds within the portfolios complement each other and are designed to provide a healthy return for the risks taken, although performance cannot be guaranteed. Each portfolio will have a different objective and risk profile. Our range of HL Multi-Manager funds feature heavily within portfolios as they allow for tax-efficient portfolio rebalancing. The HL Multi-Manager funds are managed by our sister company HL Fund Managers and costs do apply.

An all-encompassing service

Expert and personalised advice rests at the core of the service. The Portfolio Management Service is offered exclusively through Hargreaves Lansdown’s Financial Advisers.

At Hargreaves Lansdown we are proud to offer the personal service you might expect from a small company alongside the strength and staying power of the large company we have become. Our comprehensive service offers you the very best of what we have to offer.

Experienced and professional advisers

Expert investment advice rests at the core of this service. Our financial advisers are carefully selected because of their ability, comprehensive knowledge of investments and understanding of the preferential tax treatments available to you.

Administration team dedicated to you

Our award-winning administration and client support is undertaken in house. The benefit is that you will only speak to professional people who have an in-depth understanding of the service and your account.

We don’t have an automated telephone service. When you call Hargreaves Lansdown, you will speak to a Bristol-based friendly and professional person.

We provide clear and comprehensive valuations and statements as well as consolidated tax certificates.

Transparency

You can view your portfolio online at any time. Our exclusive portfolio analysis tools allow you to track its performance, and monitor how it is invested.

Account flexibility

This service gives you the flexibility to set up what is right for your individual circumstances, whether it’s to make one-off investments, set up regular savings, or both. Your money can be invested for income, growth or both. You can use the service for all of your investments, or just some while you continue to manage the rest.

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Your personal information and online security

The security of personal information is crucial. We have invested in a range of physical, electronic and procedural controls to ensure you and your money are protected. Our website uses encryption technology and we always run security checks when you contact us online or by phone.

Financial security of Hargreaves Lansdown

We have grown to become one of the UK’s largest companies organically, without any debt. We focus solely on providing investment services to our clients, placing deals on your behalf. All client money is held in Trust accounts, it cannot be used to cover any of Hargreaves Lansdown’s obligations.

Details of the cost of our Portfolio Management Service, along with advisory charges and ongoing fund charges are available from your financial adviser.

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I like keeping up to date with my investments through both my adviser and through the mobile app. The technology is so simple and interesting to use.” Ms De Caresle, Bristol

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How to get started

To find out more about our Portfolio Management Service our advisory helpdesk can arrange a free no-obligation consultation for you.

This will be an opportunity to consider whether this service is right for you by discussing your requirements and the services offered by our financial advisers. If you could use our other resources to make your own investment decisions without personal advice we will tell you and show you how to do so at no cost.

Contact us

Call the Advisory Helpdesk on 0117 317 1690 Monday – Friday 8.30am – 6pm;

Email advice@hl.co.uk;

Visit our website www.hl.co.uk/advice;

Write to Hargreaves Lansdown, One College Square South, Anchor Road, Bristol, BS1 5HL

To find out more about the Portfolio Management Service, please:

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Important investment notes

Investments and the income from them can go down in value as well as up, and as such you may not get back the full amount invested. The past is not a guide to future performance. Unlike bank or building society deposits, neither income nor capital is guaranteed. If you withdraw from these investments, especially in the early years, you may not get back the full amount invested. These investments are long-term investments. Hargreaves Lansdown cannot be held responsible for any fall in value of the portfolio purchased by the manager on behalf of the client.

This service invests into a range of funds with varying levels of risk. Higher risk and lower risk funds may be purchased for the portfolios to meet the overall risk objective for the portfolio as a whole. Some funds invest into property and the value of that property can be a matter of judgement by a valuer. There may also be liquidity problems that can delay the return of sale proceeds to investors during any period when the property or other investments are not readily saleable. Some funds invest in non-investment grade bonds which bring an increased risk of default on repayment which translates into a risk that the capital value of the fund will be affected.

Remember, you could get back less than you invest and past performance is not a guide to future returns.

The value of funds which hold overseas investments will be affected by changes in exchange rates. Some funds may invest in countries, sectors or companies which can carry higher risk or which may be less liquid.

Any tax reliefs referred to are those currently applying. Their value depends on the individual circumstances of the investor. Levels and bases of and reliefs from taxation are subject to change.

Before transferring an ISA or other investment you should carefully consider whether you believe it will be beneficial over the period of the investment to do so together with any exit charges and any charges on your new ISA. Your holdings will be transferred as cash so you will be out of the market for a period. You should be aware of the possibility of a shortfall if you cancel your investment and the potential for loss of income or growth following the cancellation of your investments or a rise in the markets, whilst the transfer is pending.

My adviser wanted to know about my personal circumstances and my ambitions and from that he gave me constructive suggestions.” Mr Thorogood, Worcestershire

Hargreaves Lansdown Asset Management Ltd, One College Square South, Anchor Road, Bristol, BS1 5HL. Authorised and regulated by the Financial Conduct Authority

Enquiries: 0117 317 1690

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