HL FUND US INCOME

MarcoM

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hl-us-fund-incom

Hi, this is a new fund introduced by HL focusing on the USA.
I was wondering what the experts on here thought of it.
I am after regular income in a more US centred environment rather than UK.

Thanks

dunstonh

I was wondering what the experts on here thought of it.

If you are going DIY and you are going to be using the HL own brand funds then you may as well stop going DIY and use an IFA instead as it will be cheaper.

The point of DIY is to save money.  Not to use expensive options that cost more.

its an expensive unfettered fund of funds that has underperformed funds you would benchmark against as cheaper alternatives.

I am after regular income in a more US centred environment rather than UK.

You have a conflict there.      Whilst UK equities tend to be high yielding, US equities tend to run at very low yield.   The yield on that HL fund is just 0.47%.       If you are running a yielding portfolio, then you would expect to be lighter in US equity or use US equity funds that focus on dividend payers.

ColdIron

You have missed the final 'e' in your link

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hl-us-fund-income

ColdIron

I can't find any dividend data, US funds tend to be light on dividends. What makes you think it would be good for regular income?

It seems to be a fund of (other HL) funds so layered management charges, which may explain the 0.77 OCF

jimjames

HL constantly point out that very few funds consistently beat the US index. I wonder how they're spinning that one now

Linton

You wont be able to find decent dividends unless you use niche funds.  For example the HL fund you reference has a yield of 0.47%.  Even the best mainstream US income funds would barely get you 3%. US bonds could provide higher interest.

I rely on a well diversified range of income funds to help cover ongoing expenses.  Worthwhile US income is available from Infrastructure funds and from funds which use magic to achieve their results (in particular Schroder US income maximiser with a yield of 5%).  However unless you are a confident investor and prepared to put some effort into understanding the funds I suggest you keep well clear.

ColdIron

The only thing I use for US focused income is BRSA (Blackrock Sustainable American Income Trust) at 4.22%. It used to use covered call options but no longer does. 1.10% OCF and dividend cover is about 0.50%, it may not be for everyone