HL Global Equity Income investment strategy
Important information - This fund is designed for investors who want to make their own investment decisions and build diversified portfolios. Investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But investments and any income from them can go down as well as up in value, so you could get back less than you put in.
This isn’t personal advice – please ask us for advice if you’re not sure an investment is right for you. This fund is managed by Hargreaves Lansdown Fund Managers Ltd., part of the Hargreaves Lansdown Group.
How the HL Global Equity Income Fund is run
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Handpicked fund managers
HL's expert team have selected managers from over 300 options to pick the stocks for the HL Global Equity Income Fund. Only three managers made the cut at launch. Our experts believe they’re the best global equity income fund managers in the market right now. -
Best-of-all styles blended approach
HL Global Equity Income Fund blends together the approaches of the external fund managers. Investors will benefit from the complementary styles of three managers for a cost that’s comparable to investing directly with an individual manager. -
Portfolio constructed by HL’s experts
Each external investment team looks after a designated portion of the fund. They'll focus on their specific roles, capitalising on tried and tested techniques to invest in what they believe to be the best companies. HL’s expert team will continuously monitor the fund, tracking the performance of each underlying manager against agreed strategies. They can change the underlying managers when needed, to secure better potential results for investors. It’s worth noting that the fund can invest up to 20% in emerging markets, which could add risk. -
Aiming for income and growth
The fund aims to provide an income at least in line with the MSCI All Country World Index over three years. Its longer-term aim (over at least five years) is to outperform other global equity income funds on a total returns basis. Returns are measured after the deduction of the fund’s charges. -
Diversified monthly income managed for you by HL
The global style of the portfolio means it offers a diversified source of income. HL manages how income is paid, aiming to provide a consistent monthly payment for 11 months of the year, with a final balancing payment at the end of the year.
Here’s how the fund is constructed:
HL Global Equity Income underlying portfolios
Aegon
What they’re looking for
Aegon’s investing process is set up to find companies with strong balance sheets. With Mark Peden at the helm for over a decade, and helped by two other fund managers, the team’s looking for plentiful free cash flow that can sustain and grow dividends over the long term.
The role they play in the fund
Aegon’s focus is tilted towards shares trading at an attractive value, while keeping in mind the associated performance risks that come with these.
Baillie Gifford
What they’re looking for
James Dow and Ross Mathison have an emphasis on growth companies that they believe to be high quality. They also look for dividend-paying companies that can grow their dividend year-on-year.
The role they play in the fund
Baillie Gifford’s focus is on dividend growth, as opposed to generating a high yield. This complements the other strategies HL has selected.
JPMorgan
What they’re looking for
Sam Witherow and his team use a core global income strategy focused on delivering an income premium to the benchmark index and growing the income faster than the index over time.
The role they play in the fund
JPMorgan are looking to build a strategy that can perform in line with, or beat, the benchmark index in up markets and protect in down markets.
S&P 500 Exchange Traded Funds (ETFs)
What they’re looking for
These ETFs invest in shares of large companies, as measured by market capitalisation, in the United States of America. They are passive funds, which means they aim to track or replicate the performance of a particular market sector or index. In this case, the S&P 500.
The role they play in the fund
A small portion of this fund will be invested in S&P 500 ETFs, which boost HL Global Equity Income Fund’s exposure to the US. This helps the fund manage risk by diversifying geographically.
Costs
Data correct as at 10 October 2024.
Yearly charge based on an example £1,000 investment:
Initial charge
Ongoing charge
HL platform fee
Total charge
Initial charge
Ongoing charge
(OCF/TER)
HL platform fee
Total charge
The ongoing charge is taken directly from the fund. This covers the management of the fund and all expenses other than transactional fees which are charged on top of this. These costs are incurred by all funds when shares are bought or sold and are reflected in the fund’s price.
The HL account charge is our fee for looking after your investments, which won't be over 0.45% per year. Both of these charges will be payable if you want to hold the fund with HL. The above example assumes no change in the value of your investment.
This fund is managed by Hargreaves Lansdown Fund Managers Ltd., part of the Hargreaves Lansdown Group. If you invest, HL will receive the fund's management charge, as well as the account charge.
See how the costs will affect your investment in detail
Investments will fall as well as rise in value, so you could get back less than you invest. Income is variable and not guaranteed. Investing in funds isn't right for everyone. You should only invest if the fund's objectives are aligned with your own, and there's a specific need for the type of investment being made. You should understand the specific risks of the fund before you invest, and make sure any new investment forms part of a diversified portfolio. We recommend holding this fund for at least five years.
Ready to invest?
Invest by 11:59pm on 6 November to make the most of the £1 per unit fixed launch price.
You can invest with a lump sum from £100 or start a monthly Direct Debit from just £25 per month. Direct Debits are collected and invested after the launch date, so you won’t get the £1 per unit launch price.
Key Investor Information Fund prospectus View fund factsheet