Hargreaves Lansdown is to launch its third fund of funds, an income portfolio aiming for a yield 10%...
Hargreaves Lansdown is to launch its third fund of funds, an income portfolio aiming for a yield 10% above that of the FTSE All-Share.
The fund, to be launched in the autumn with around 10 holdings, will invest in some of the blue chip UK Income funds, such as Credit Suisse Income, but also hold positions in some boutique offerings.
The building of its fund of fund range comes as the group hangs out a 'for sale' sign on its other unit trust offerings.
Over the past few years Hargreaves has been rolling investors in its discretionary portfolios into unit trust offerings as they offered greater tax efficiencies. This has left the group with a small range of unit trusts with combined assets of some £250m.
These include: HL Zeros, Aggressive, UK Performance, Utilities, Optimum, Dynamic, Investment Trust Portfolio Trust, Active Tracker and Balanced Growth.
The problem with the funds is that it is difficult to sell them through only one channel, its own, as other intermediary firms are unlikely to recommend them, Peter Hargreaves, managing director of the brokerage and intermediary firm, said.
There is no urgency on selling the funds, he added, and until a solution has been found the group will continue to manage them as before.