Any thoughts on the new 'HL Multi Manager High Income Fund?

dunstonh

AnotherJoe wrote: »

What about a Vanguard Lifestrategy ?

It hasnt got an income focus which is generally the point of an income fund. i just pulled it as an example.

bowlhead99

AnotherJoe wrote: »

What about a Vanguard Lifestrategy ?

The OP was looking for a fund specialising in delivering a high level of income, apparently because they already had lots of investments that didn't have a high yield interest/dividend focus, so wanted to position the last 1.5-2.5% of their portfolio in something that would deliver more income.

The L&G multi-index income funds mentioned by Dunstonh try to give more income from a fund-of-funds using more passive underlying holdings and thus a lower cost. They also do a suite of multi-index funds without a particular income focus, which are perhaps more akin to the lifestrategy ones from a yield perspective, in that most of the equities and bonds are simply market-cap weighted resulting in relatively lower levels of income.

HardCoreProgrammer

According to the fund information page (http://www.hl.co.uk/funds/multi-manager-funds/hl-multi-manager-high-income), the charges are 1.33% (net ongoing charge) + 0.45% (platform fee) = 1.78%. This is just under 40% of the expected yield of the fund (4.5%).

So 40% of the income you get is eaten up by charges - remember that bonds do not have growth potential like shares. You do not have to be Einstein to work out whether this is good value or not.

Have a look at some of the bond funds recommended by the HL. With discounts (in terms of "loyalty bonus", you may be able to get the charges to around 1.0%.

AnotherJoe

Will do that thanks

bigadaj

dunstonh wrote: »

That is probably the thing. It would be tailored. Not an off-the-shelf solution that is trying to fit everyone. It is cheaper and that gives it a head start.

However, if you want to DIY and want something simple then use something like L&G Multi Index Income fund. Or Jupiter Distribution if you want management but established history and track record (not a recommendation. Just an observation). If you want DIY and are wiling to pay more than an IFA arrangement then you seriously need to consider why you are going DIY and what you are trying to achieve.

From the OP the problem might be that you couldn't really do your thing on an investment of £7k, wouldn't be worth your while.

dunstonh

bigadaj wrote: »

From the OP the problem might be that you couldn't really do your thing on an investment of £7k, wouldn't be worth your while.

You are right. I dont see many being interested in doing that unless it is an existing relationship or family link. It is ripe for DIY but with a bit more research and understanding needed as to how to pick the right investments.

AnotherJoe

Thanks all I've done some reconsidering and cancelled my order.

I'll see if i can come up with a clearer explanation of what I'm looking to acheive and will post a new thread.

Bazofts_Revenge

Thanks to all that contributed to this I contemplated this fund and I also have about £5K in the Managed income and growth fund to which I was putting in £200 (+£50 tax back) a month. I am contemplating leaving the managed fund and just splitting my fund between the different fund listed by H&L. They even give the weightings. This should lower my charges overall.

Woodford CF Woodford Equity Income Class Z 18.29%
Artemis Income Class R 16.57%
Threadneedle UK Equity Alpha Income 15.15%
J O Hambro CM UK Equity Income Class B 12.93%
Marlborough Multi Cap Income Class P 10.69%
Majedie UK Income Class X 7.79%
Jupiter Income Trust Class I 7.03%
Liontrust Macro Equity Income Class R 5.05%
Newton Global Income Shares 2.10%
Man GLG Japan CoreAlpha Professional 1.63%

There are just 2 funds for which they don't have links for (written in red). I would also avoid putting more in Woodford as my SIPP has £4k in the PCT just over 2K in the income fund.