Thoughts/opinions on this new HL Global Equity Income fund?

handful

as the title suggests, I have been getting bombarded with information from HL inviting me to invest in this new fund and just wanted to ask for some opinions from some of you knowledgable folk. To me the introductory price of £1 means nothing as it could drop from there just as easily as any other price. Charges look a  bit on the high side as well but I don't know how this compares with similar alternatives? they boast about securing the best three fund managers out there but they all say that! Any views would be much appreciated.

https://www.hl.co.uk/funds/hl-funds/hl-building-blocks/global-equity-income/our-investment-strategy

£0

Initial charge

£7.90

Ongoing charge

£4.50

HL platform fee

£12.40

Total charge

0%

Initial charge

0.79%

Ongoing charge
(OCF/TER)

The ongoing costs associated with the funds. This will include both the fund manager's annual charge and some other fund expenses such as the underlying funds’ management charge, depositary, registrar, accountancy, auditor and legal fees, but not the fund's transaction costs such as dealing commissions.

0.45%

HL platform fee

1.24%

Total charge

FIREDreamer

It’s a no from me. Too expensive for what it is. 

El_Torro

I haven't looked into this fund specifically but HL's own bundled funds tend to be expensive with no obvious benefit compared to investing in more economical multi asset funds (using HL if you like, though there are cheaper platforms out there). 

If you're willing to pay these kind of fees then you might as well find an IFA who will charge you the equivalent or less and give you a much more personalised service thrown in. Assuming you have enough funds to make it worth the IFA's while to manage them. 

dunstonh

To me the introductory price of £1 means nothing as it could drop from there just as easily as any other price. 

HL use that marketing spiel with every fund launch they promote.    They are usually criticised each time too.    For me, it looks like they are playing on the privatisation shares style which did have some justification for buying at launch.   However, with funds, that does not apply.

 Charges look a  bit on the high side as well but I don't know how this compares with similar alternatives? 

Its very expensive.     With those fees (platform and fund) you may as well pay an IFA to give you advice and still come in cheaper.    The whole point of DIY is to save money.  Not spend more.

vacheron

I've been getting relentlessly spammed with this fund launch too, certainly enought to make me suspicious as to why they are so keen for everyone to get on board.

Their main selling point seems to be "Hey, We're Hargreaves Lansdown. You know of us, so therefore you can trust us!"

To me it seemed average, until I saw the fees, which then made it less than average.

handful

Thanks all, just confirmed my own thoughts really! Much appreciated.

EdSwippet

handful said:

... To me the introductory price of £1 means nothing as it could drop from there just as easily as any other price.

Spot on. HL's push for you to "Invest by 11:59pm on 6 November to make the most of the £1 per unit fixed launch price" is pure marketing BS. It appears clearly designed to deliberately mislead while at the same time just squeaking inside the letter of (although arguably not inside the spirit of) the Advertising Standards Agency's code of conduct.

LHW99

Their main selling point seems to be "Hey, We're Hargreaves Lansdown. You know of us, so therefore you can trust us!"

Woodford Equity Income anyone? (not suggesting this is in any way equivalent).

Never trust anyone with your finances (no matter how well known) unless you have double-checked absolutely everything that is said / offered.

jimjames

HL used to be very strong on "we only recommend funds with a strong track record". Since they realised how much money they can make from managing their own funds that all seems to have gone out the window.

I can't see any reason to invest in an expensive fund at launch when it has zero track record and not even the benefit(!!?) of a well known manager like Woodford.