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

  • 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 a small number made the cut. Our experts believe they’re some of 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 several 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 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 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.

Ready to invest?

You can invest with a lump sum from £100 or start a monthly Direct Debit from just £25 per month.

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