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  • FIRST POST
    • Herbalus
    • By Herbalus 15th Apr 19, 2:52 PM
    • 2,301Posts
    • 1,993Thanks
    Herbalus
    new HL fund £1
    • #1
    • 15th Apr 19, 2:52 PM
    new HL fund £1 15th Apr 19 at 2:52 PM
    HL have launched a new fund with a fixed price of £1 per unit until launch on 2nd May.

    https://www.hl.co.uk/funds/hl-funds/hl-select/hl-select-global-growth-shares?utm_campaign=AI025_HL_Select_Global_launch& theSource=AI025&Override=1

    I know HL funds are generally considered poor value and rely on marketing to more unsophisticated investors. My question is what the £1 price relates to.

    If this is the unit price, I donít see what benefit it is by being £1. If they sell 1000 units and so raise £1000 and buy £1000 of shares, each unit remains at £1 underlying value.

    But if they double the unit price to £2, they sell 500 units and raise £1000 to buy the same shares, each unit is worth twice as much so you havenít overpaid for the units.

    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.
Page 2
    • ColdIron
    • By ColdIron 16th Apr 19, 6:24 PM
    • 5,119 Posts
    • 6,957 Thanks
    ColdIron
    "This is an example of the information you’ll see, once the fund is launched"
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