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HL Funds

HL Global Corporate Bond

New

Invest in bonds from companies around the world

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Important information - This is designed for investors who want to make their own investment decisions without personal advice. If you’re unsure of the suitability of an investment for your circumstances, please contact us for advice. Investments will fall as well as rise in value, so you could get back less than you invest.

A foundation to build on

Bonds make up a huge part of the investment universe. While shares grab the headlines, more each year is invested in bonds.

They can provide an income, help reduce the risk of a portfolio and offer diversification.

Every investor looking to build a diversified portfolio should consider including corporate bonds.

For many, they act as a foundation to build on.

That’s why we launched the HL Global Corporate Bond Fund.

How to buy corporate bonds from around the world

Think about this fund if:

  • You’re comfortable building your own diversified portfolio
  • You’re happy to check in on your investment every now and again
  • The fund’s objectives align with your own
  • You’d like experts to manage the fund day-to-day
  • You won’t need the money for at least 5 years
  • You’ve built up cash savings for emergencies
  • You’re comfortable with the value of your investment going up and down, and you’re aware you could get back less than you invest

Think about alternatives if:

  • You don’t feel comfortable choosing and reviewing your own investments
  • You feel uncomfortable with your investment going down as well as up in value or you’re unsure of the difference between saving and investing
  • You’re not sure where or how to invest, and would benefit from taking advice

With one investment you’ll get:

  • Diversification
    The fund will mainly invest in investment-grade bonds from a wide number of the highest quality companies around the world. The fund also has the flexibility to invest up to 20% of the fund in bonds offering higher income where it sees potential from lower-quality companies, which can add to the risk of the fund.
  • A monthly income
    You can choose to have the income paid each month to your HL account by picking the income units. Any income is variable and not guaranteed.
  • Great managers
    We’ve picked five fund managers that we think offer great investment potential. They’re experienced and have demonstrated strong performance. They’ve got different skillsets, covering a huge universe of bond expertise.
  • The opportunity to beat the market
    The fund has input from experienced managers, so there’s potential to beat the market. The fund aims to outperform its benchmark (a measure of bond market performance), the ICE BoFA Global Corporate Index, over five years, after charges. This index measures the overall performance of Global Corporate Bonds including any income they produce.
  • HL Experts
    HL’s own fund managers oversee it, making sure each manager stays on track with the fund’s objectives. They’ll hold fund managers to account and make sure they’re following their strategy.

Find out more about the fund’s strategy

Key bond terms explained:

  • Bond - a type of investment where investors lend money to governments or companies in exchange for a regular income payment. Usually they last for a fixed period until the debt is repaid
  • Corporate Bond - a type of bond issued by a company when it borrows money
  • Yield - the amount of income an investment produces, given as a percentage of its price
  • Investment-Grade Bond - a bond given a high-quality rating by a credit rating agency like Standard and Poor’s or Moody’s. They are thought to have a lower risk of the company not paying back its debt

Costs

Yearly charge based on an example £1,000 investment:

£0

Initial charge

£6.20

Ongoing charge

£4.50

HL platform fee

£10.70

Total charge

0%

Initial charge

0.62%

Ongoing charge

0.45%

HL platform fee

1.07%

Total charge

The ongoing charge is taken directly from the fund and will be taken from the income it produces rather than the capital. 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 bonds are bought or sold and are also reflected in the fund’s price. The HL platform fee is our charge 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 growth.

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 platform fee.

See how the costs will affect your investment in detail

View HL’s charges

Before making an investment, please read the key investor information, and the HL Key Features and Terms and Conditions of any new account you may open.

Key Investor Information Fund prospectus View fund factsheet

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Frequently asked questions

  • What’s the minimum I can invest?

    You can invest lump sums from £100 or invest by Direct Debit starting from as little as £25 per month.

  • Which accounts can I invest in?

    You can buy and hold the HL Global Corporate Bond Fund in any of our investment accounts.

    If you want to see all the options, and their risks and benefits, try our compare accounts tool.

    Compare Accounts

  • Can I set up a Direct Debit into the HL Global Corporate Bond Fund?

    Yes, you can invest by Direct Debit. You can set up a Direct Debit from as little as £25 per month. We’ll take payments on the 7th of the month or next available working day and invested by the 10th of the month or next available working day.

    To set up your direct debit, log in to your account and go to the “Monthly Savings” tab within an existing account via our website, or via the “Regular savings” section in the HL app. You can also set up an instruction when opening an account.

  • What’s the difference between income and accumulation units?

    The type of unit you hold determines how any income from the fund is treated.

    With income units, income is paid out to fund holders as cash. This could provide the investor with an income stream or the cash could be used to buy the same or a different investment.

    With accumulation units, income is kept within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest the income, accumulation units offer a more convenient and cost-effective way of doing so.

    This fund is available in both accumulation and income units.

    View HL Global Corporate Bond Accumulation Factsheet

    View HL Global Corporate Bond Income Factsheet

  • How will income be treated?

    The type of unit you hold determines how any income from the fund is treated.

    With income units, income is paid out to fund holders as cash to the account it’s held in. This could provide the investor with an income stream, or the cash could be used to buy the same or a different investment.

    This income will be treated in line with the income instruction on your account. You can change this within the account settings tab of your account.

    Held on account: we shall transfer your income to your capital account where it will be available to invest when you choose.

    Automatically re-invested: we will reinvest any income automatically for you between the 11th and 21st of the month when it reaches £10 (or your chosen minimum) per holding.

    Paid out: your income will be paid to your nominated bank account.

    With accumulation units, income is kept within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest the income, accumulation units offer a more convenient and cost-effective way of doing so.

    This fund is available in both accumulation and income units.

    View HL Global Corporate Bond Accumulation Factsheet

    View HL Global Corporate Bond Income Factsheet

  • How will income be taxed?

    Any income will be treated as an interest payment rather than a dividend payment.

    If this fund is held in an ISA or SIPP, any income will not be taxable.

    Outside of an ISA or SIPP, we’ll pay the income without deducting any tax, but you may need to pay tax on it depending on your own circumstances. This includes investments in accumulation units where the income is reinvested.

    At the end of the tax year we’ll send a consolidated tax certificate which will show the income you’ve received to help you when completing your taxes.