new HL fund £1

AnotherJoe

Herbalus wrote: »

HL have launched a new fund with a fixed price of £1 per unit until launch on 2nd May.

<snip> What am I missing? Is the £1 price a marketing tactic? As most people think in terms of money to invest as opposed to determining to buy a specific number of units and then finding out how much money that is.

Thats not really the same thing. They are raising an amount of money. The end price is up to them.

It has to be "a" price, and £1 is a nice, simple, easy one. If it launched at (say) 3.47p it wouldnt be very memorable "buy in now at £1" sounds much better than "buy in now at £3.47p" and is considerably better in an advert than "invest £1,000 and we'll tell you how many units that is in a few weeks".

It also makes it very easy for buyers since "I'd like to invest £1,000" is easy to work out how many units, and no one will make a mistake buying units instead of amount or vice-versa.



So yes its mostly marketing but there is some logic to it, it might as well be be £1 as anything else.

A_T

Might be a good fund but I'd like to see what it's investing in first.

Doshwaster

Most fund managers like to keep their unit price in the £1 to 10 range as it makes the numbers manageable. There are some exceptions - the Vanguard funds are all in the hundreds of pounds per unit.

Not that it makes any difference in reality 100 x £1 is the same as 1 x £100.

Alexland

HL just keep pushing this soddin' fund in a relentless marketing effort. Am going to login tonight and switch off their 'research' emails. I've been doing that a lot recently with other fund manager emails that clutter my inbox. There are very few in the investment industry with anything interesting to say.

short_butt_sweet

personally, i wouldn't invest in a new fund unless it had a fixed price of £3.14 or £2.71 (approximately). not holding my breath, because the maths geek demographic is probably too small for it to be worth anybody's while launching such a fund.

Alexland

short_butt_sweet wrote: »

i wouldn't invest in a new fund unless it had a fixed price of £3.14 or £2.71 (approximately).

Without any performance history I would want the advisor to show me an asset allocation pi chart before e could sell it to me. I wouldn't want to make an irrational decision.

dividendhero

Herbalus wrote: »

I know HL funds are generally considered poor value and rely on marketing to more unsophisticated investors. .

I'm not convinced that's a totally fair comment.

I've run the numbers for HL MM Income and Growth - it's 5 year performance is pretty close to CTY - a staple for many "sophisiticated investors"

Add in the brand recognition of HL, 4.5% yield and monthly payouts, you can see it's appeal - certainly better than money stuck in a cash ISA earning next to nothing

Pension_Geek

Alexland wrote: »

Without any performance history I would want the advisor to show me an asset allocation pi chart before e could sell it to me. I wouldn't want to make an irrational decision.

i think that’s a good idea, it can be very complex.

dividendhero

Alexland wrote: »

Without any performance history I would want the advisor to show me an asset allocation pi chart before e could sell it to me. I wouldn't want to make an irrational decision.

HL have been there and done it....

https://www.hl.co.uk/funds/hl-funds/hl-select/hl-select-global-growth-shares/portfolio-breakdown

ColdIron

"This is an example of the information you’ll see, once the fund is launched"