The launch of the Hargreaves Lansdown Global Income fund brings another easy-to-use portfolio building tool to do-it-yourself investors on the platform.
The new Global Equity Income fund invests in a portfolio of dividend-paying companies around the world favoured by selected expert managers. The strategy seeks to strike a balance between risk and return and offers long-term capital appreciation in addition to income.
The HL Global Income, carries an annual ongoing charges figure (OCF) of 0.79% and will be overseen by Hargreaves Lansdown fund managers Tom Wells and Richard Troue.
Wells joined the firm as a fund manager in its multi-asset team from Aviva Investors in 2021. Troue joined the investment team in 2010 before rising to head of investment analysis and currently co-manages the HL Global Corporate Bond, Multi-manager Strategic Bond and Global Equity Income funds.
Hargreaves Lansdown has partnered with asset manager Aegon, Baillie Gifford and JP Morgan to develop the new product. Aegon’s approach focuses on screening for quality indicators such as strong balance sheets and cashflow in companies, while Baillie Gifford looks for growth potential and JP Morgan seeks balance through investing across the yield spectrum.
The firm’s chief investment officer Toby Vaughn said: “While UK dividends are a strong and reliable option historically, the strengthening of global dividends in making international diversification an attractive strategy – and one we’ve seen adopted by our clients as well as incorporated into our own asset allocation strategy.”
DIY building blocks
The Hargreaves Lansdown Global Income mandate adds to the firm’s Building Block line-up of funds which seek to make it easy for investors to build their own portfolios from scratch.
The multi-manager funds offer diversification across different sectors, utilising the expertise of dedicated fund managers, with their styles balanced to suit different market conditions.
They each carry somewhat higher fees than the standard funds on Hargreaves Lansdown platform, which the firm justifies with reference to the expertise that goes into building them. Fees on the platform are uncapped.
In addition to the Hargreaves Lansdown Global Income fund, the now eight-strong range also includes the HL Global Corporate Bond, US, UK Income, Strategic Bond, UK Growth, European and Asia and Emerging Markets funds.
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
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