View the article online at http://citywire.co.uk/money/article/a892332
Hargreaves Lansdown unveils high income fund
Fund supermarket further expands its own investment range with new high income fund that will aim to yield 4.5% a year.
Funds supermarket Hargreaves Lansdown is to launch an income fund that will aim to yield 4.5% a year through investments in other funds.
The HL Multi-Manager High Income fund is the fifth in the firm's fund of funds range and follows the launches of its UK Growth, European, Asia & Emerging Markets and Strategic Assets funds.
The pair hope to generate the annual yield through a flexible 60%-40% mix of holdings in equity income funds and corporate bonds. It will levy an on-going charge of 1.33%.
With interest rates having been frozen at a record low of 0.5% for seven years, Hargreaves says the demand for investment income remains as strong as ever.
‘[The fund] offers the benefits of potential capital and income growth from a selection of the best equity income funds available plus seeking long-term income and lower volatility from a selection of our favourite bond fund managers,’ the company said.
‘By blending different types of funds, constantly reviewing the portfolio, and moving between different areas of the market when more attractive opportunities emerge, we aim to deliver an impressive high income, which has the potential to grow over the long-term. We believe this justifies the additional costs incurred by a multi-manager approach,’ it added.
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