View more on these topics

Hargreaves launches low cost equity income fund

Hargreaves Lansdown
Hargreaves’ offices in Bristol

Hargreaves Lansdown is launching a low cost equity income fund, the second addition to its managed equity range that launched last December.

The HL Select UK Income Shares fund, which will pay its estimated 3.9 per cent yield monthly, will have an OCF of 0.6 per cent making it cheaper than 90 per cent of all active funds.

It is also cheaper than 91.4 per cent of products in the IA UK Equity Income sector.

An HL Vantage platform fee of up to 0.45 per cent also applies.

Fund manager Steve Clayton says the level of communication with investors in the £225m HL Select UK Shares fund, which launched in December, has been a “huge hit” with investors.

Rather than just showing the top 10 holdings, Hargreaves will provide investors with information about the entire portfolio, which will include approximately 30 positions.

“With interest on cash bumping along the bottom and inflation climbing, there is an increased focus on generating sustainable income from the equity markets,” Clayton says.

The fund will seek rising income backed by capital gains, Clayton says.

“Companies that grow their dividends usually see their shares appreciate over the long-term too – in this way a rising income can also translate into long-term capital growth.”

The fund will launch on 2 March.

Recommended

Mark-Dampier-700x450.jpg

Hargreaves research head bullish in face of volatile 2017

Column inches are filled at this time of year with commentators’ predictions for the coming 12 months. It is a practice I have never quite understood. Nothing in financial markets will change simply because we have entered a new year. While it makes for interesting reading, the reality is markets cannot be segmented into predictable […]

Ian-Gorham-presenting-at-Platforum-conference-2013.jpg
2

Hargreaves sees Brexit boost as chief exec steps down

Hargreaves Lansdown has posted a pre-tax profit of £131m driven by higher than normal trading volumes in the wake of the Brexit vote. In its half-year results, published today, Hargreaves says it saw 1.95 million client-driven equity deals in the six months to 31 December, compared with 1.29 million in the previous six months. Weak […]

Business Handshake 480
4

Hargreaves and Schroders among ‘least empathetic’ finance firms

Hargreaves Lansdown and Schroders are two of the least empathetic global finance companies, according to Harvard Business Review’s 2016 Global Empathy Index. Hargreaves was the 16th least empathetic company on the index, closely followed by Schroders in 17th. Both were a touch more empathetic than Virgin Money, however, which was the 15th least empathetic company […]

Nat Holt
5

Client churn has reared its ugly head again

In the run-up to the RDR, churning clients was a real concern. The FSA was alive to the risk that clients would be moved into new products before 31 December 2012 in order for advisers to “bank” trail ahead of the RDR deadline. Nowadays, there is a different name above the regulator’s door but the […]

Twitter-Social-Media-Keyboard-700.jpg

Stumped by social media?

By Scott Mill, Digital Marketing Consultant In an age of seemingly endless distractions, getting the attention of your audience can seem daunting. The challenges faced are already being addressed by other industries and it occurred to me that we could learn a few things from the game of cricket. Play the short game Test cricket […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment