Hargreaves Lansdown is launching a new, actively managed global equity income fund, to deliver a “simple global income and growth solution”.
The HL Global Equity Income fund will start trading on 7 November 2024, the UK platform said in a statement today (7 October).
Toby Vaughan, chief investment officer, Hargreaves Lansdown said: “We’re excited to launch our new Global Equity Income fund, giving clients easy access to global stock markets with a focus on delivering both reliable income and growth.
“The fund invests in a well-diversified portfolio of high-quality, dividend-paying companies worldwide, handpicked by our chosen expert managers. Along with steady income, it offers the potential for long-term capital appreciation, striking the right balance between risk and return.
“While UK dividends are a strong and reliable option historically, the strengthening of global dividends is making international diversification an increasingly attractive strategy – and one we’ve seen adopted by our clients as well as incorporated into our own asset allocation strategy.
“The fund will complement our existing range of HL Building Block funds, offering clients a seamless and straightforward way to build a portfolio aligned to their long-term investment goals.”
The fund is aimed at any investor looking to build an investment portfolio aiming to provide income, or income and growth, as well as those looking for exposure to global stock markets with particularly appeal to investors transitioning towards retirement or in retirement where income is a key objective.
HL has partnered with three global equity income managers in the sector:
1. Aegon – Aegon take a ‘quality income’ approach to dividend investing, with their process set up to find companies with strong balance sheets and plentiful free cash flow that can sustain and grow their dividends over multi-year periods.
2. Baillie Gifford – there’s an emphasis on selecting dividend-paying companies that Baillie Gifford perceives to have attractive growth prospects. The companies typically have resilient business models that provide stability at times of market volatility.
3. JPM – a disciplined core approach providing a balance of current income and future dividend growth by investing across the yield spectrum.
The fund is one of HL’s Building Block funds, which is a range of funds offering greater diversification across different global sectors, will fund managers that are dedicated experts.
The fund will pay a monthly income, with a final payment of the closing balance at the end of the year, while the asset allocation covers UK, developed markets, ex-UK and emerging markets.
Launch and fund details
• There’s a £1 per unit fixed offer launch price from 10 October until 23:59 on 6 November 2024.
• Minimum investment: lump sum of £100 or £25 per month by Direct Debit
• OCF 0.79% plus HL platform fee:
o ISA – up to 0.45%
o LISA – up to 0.25%
o JISA – Free
o SIPP – up to 0.45%
o Fund and share account – up to 0.45%
HL fund managers are Tom Wells and Richard Troue.
Wells joined HL in 2021 as a fund manager within the multi-manager team, with a focus on portfolio construction, investment strategy and economic research. Prior to joining HL he was a multi-asset fund manager at Aviva Investors.
Troue joined HL in February 2006. He joined the investment team in February 2010, initially as an investment analyst, before becoming Head of Investment Analysis. In July 2019 he became part of the team responsible for managing HL’s Multi-Manager funds. He currently co-manages the HL Global Corporate Bond, HL Multi-Manager Strategic Bond and HL Global Equity Income Funds.
