Fund platform - HL questions

LightKnow

Hi 

I been reading few stuff lately regards to HL one e.g below , This sprung some general questions. Saves me making multiple posts. So I thought ask it all under one 


Say in worst case situations if a platform was hit hard . Could this effect users funds being lost or investor pulling out ? Hope this makes sense


So lately been looking into investing in ESG type funds .this gonna probably sound silly-   Am assuming before a fund is put together or any positive results from the fund e.g say X fund has managed to help support community with more water and HL has made article obout the funds positive impact. Do I take this as accurate research?
Guess what am trying to get at is. These esg funds are actually making a difference and not just pooling money in there own pockets 

ETF funds or stocks - are they replication of companys shares?  am I not investing in actual company? replicating there performance? 
If am not putting my money in to invest with a company. Then what does etf do ? 


https://www.theguardian.com/business/2022/oct/16/hargreaves-lansdown-hit-by-lawsuit-on-behalf-of-woodford-fund-investors

https://www.msn.com/en-gb/money/other/hargreaves-lansdown-boss-quits-after-firm-hit-with-multi-million-pound-woodford-lawsuit/ar-AA131ty7

jimjames

I'll try to cover some of the above but you might need to do a bit more research.

I'm not sure what you mean by "platform hit hard". Platforms hold investments for people, all investments are in the name of the investor and ringfenced so the platform performance should have no impact on your investments.

Funds don't support communities. Funds hold shares in multiple companies. Those companies may carry out activities that are rated as ESG but the fund only holds them, it doesn't do anything itself. ESG funds hold company shares. They don't replicate them, you are investing in that company via the fund or ETF..

El_Torro

If HL (or any other platform) were to go bust your investments should be fine. The most likely outcome is that some other platform will take over the portfolios and you would be able to access your investments from that platform. It may take some weeks for the matter to be resolved. 

It's worth noting that HL is a very solid platform, with good financials. One of the benefits of being expensive I guess. There are other platforms out there on much more shaky ground than HL. Personally I use HL, though I use other platforms too. If something were to happen to HL I wouldn't want to have limited access to all my investments, even if it's only for a few weeks.

LHW99

ESG has become very much a "catch all". You have to look under the bonnet to see exactly what any "ESG" fund regards as OK or not. Some will include oil, some won't etc. some expect the companies they invest in to do positive things in various ways, some just demand there are no negatives.

Albermarle

LHW99 said:

ESG has become very much a "catch all". You have to look under the bonnet to see exactly what any "ESG" fund regards as OK or not. Some will include oil, some won't etc. some expect the companies they invest in to do positive things in various ways, some just demand there are no negatives.

Plus the more really dark green it is, then the more it will cost, as doing it properly takes time and effort for the fund to vet all their holdings.

LightKnow

I don't I thought if a platform went bust or had major negative press. The funds within that platform e.g managers would pull there assets/funds ? Like if say Fund A was only in platform A. I think am over think this lol 


From that aside. I get each fund would potentially have there own values or ethics or what they value socially responsible but wouldn't there be a line they wouldn't be able to crosss ? E.g no investment in weapons or negative social change? 



So is this different from ESG funds -

"Investing in impact funds can be a great way to help solve some of these environmental issues and support social developments. They aim to have a positive effect on the world around them, alongside delivering a financial return. They also measure and report back on the positive impact they set out to make."
 

Last thing - If no data is available for a fund like there performance or list of companies but you can invest in them. Is best to stay clear ? 


And what kinda fund or share is this ? Is this investment Purley in gaming or other is it not ??
 https://www.hl.co.uk/shares/shares-search-results/g/global-x-video-game-and-esport-usd-acc


Sorry for these questions, am looking into adjusting my funds. So wanted to understand different types things on my mind. 

Linton

LightKnow said:

I don't I thought if a platform went bust or had major negative press. The funds within that platform e.g managers would pull there assets/funds ? Like if say Fund A was only in platform A. I think am over think this lol 


From that aside. I get each fund would potentially have there own values or ethics or what they value socially responsible but wouldn't there be a line they wouldn't be able to crosss ? E.g no investment in weapons or negative social change? 



So is this different from ESG funds -

"Investing in impact funds can be a great way to help solve some of these environmental issues and support social developments. They aim to have a positive effect on the world around them, alongside delivering a financial return. They also measure and report back on the positive impact they set out to make."
 

Last thing - If no data is available for a fund like there performance or list of companies but you can invest in them. Is best to stay clear ? 


And what kinda fund or share is this ? Is this investment Purley in gaming or other is it not ??
 https://www.hl.co.uk/shares/shares-search-results/g/global-x-video-game-and-esport-usd-acc


Sorry for these questions, am looking into adjusting my funds. So wanted to understand different types things on my mind. 

It is a fund that purely invests in companies that make video games.  You can see which ones if you follow your link and look for the annual report.

LightKnow

Rather make new post - please advise on this -

My HL account has cash in there to invest with when I needed to ( non gains) , which I was thinking taking out £500 to add in my bank over 4 months so I could invest into my funds monthly , will this impact me in terms of tax??  

It shouldn't though right ? Am only using money I put away as back up 

InvesterJones

LightKnow said:

Rather make new post - please advise on this -

My HL account has cash in there to invest with when I needed to ( non gains) , which I was thinking taking out £500 to add in my bank over 4 months so I could invest into my funds monthly , will this impact me in terms of tax??  

It shouldn't though right ? Am only using money I put away as back up 

Is the account within a tax wrapper (ISA or SIPP)? If not, then no impact - you'll pay whatever tax is due on the interest accrued either way.

LightKnow

InvesterJones said:

LightKnow said:

Rather make new post - please advise on this -

My HL account has cash in there to invest with when I needed to ( non gains) , which I was thinking taking out £500 to add in my bank over 4 months so I could invest into my funds monthly , will this impact me in terms of tax??  

It shouldn't though right ? Am only using money I put away as back up 

Is the account within a tax wrapper (ISA or SIPP)? If not, then no impact - you'll pay whatever tax is due on the interest accrued either way.

Yes the cash is ISA with HL but I don't get interest on it 

Stargunner

LightKnow said:

InvesterJones said:

LightKnow said:

Rather make new post - please advise on this -

My HL account has cash in there to invest with when I needed to ( non gains) , which I was thinking taking out £500 to add in my bank over 4 months so I could invest into my funds monthly , will this impact me in terms of tax??  

It shouldn't though right ? Am only using money I put away as back up 

Is the account within a tax wrapper (ISA or SIPP)? If not, then no impact - you'll pay whatever tax is due on the interest accrued either way.

Yes the cash is ISA with HL but I don't get interest on it 

You won’t be getting much interest from your bank account on £500 over 4 months whilst you drip feed it back in to HL