That’s the question a number of my clients have asked since the launch of this fund was announced.
I am not a regulated financial adviser so I can’t give advice but I can provide some guidance and tell you what I am thinking.
Firstly a disclosure. I am a great fan of Hargreaves Lansdown and hold all my pension and investment funds on their platform. Generally speaking I hold funds and not individual shares.
My core strategy is to only hold funds from their Wealth 150+ list. If their experts have narrowed down more than 2500 retail funds to a shortlist of 150 who am I to argue?
So here is the question:
Is there a good enough reason to depart from my core strategy and buy into the Hargreaves Lansdown Select UK Income Shares Fund?
I have asked Hargreaves Lansdown if their own funds will be considered for inclusion in the Wealth 150+ list but don’t have an answer yet.
Hargreaves Lansdown have an excellent investment management team but as yet no experience in managing funds comprising of individual share holdings so there is no track record to go on. So that’s not positive.
What is however interesting is that new funds often perform very well. If Hargreaves Lansdown attract a lot of money – and they should – which has to be invested, the action of buying their selected shares alone should push up the price of those shares and the fund.
Their Select UK Shares Fund, only launched in Dec 2016, already has a value of £221 million. If the same happens with the Income Fund – and there is no reason why it shouldn’t – that’s a lot of money to hit the market very quickly and it must have an impact on the price of the shares they are buying.
So what am I going to do? Should I stick to my core strategy or make an exception?
Rarely have I been so torn. What do you think?
I have until 1st March to make my decision and I will let you know the outcome. Today I am thinking that I will make an exception and divert from my core strategy (of only holding Wealth 150+ funds) – but then I may change my mind tomorrow.
I know that doesn’t help much but at least it shows how well balanced the decision is.
Watch this space… If I get a flash of inspiration, shared it certainly will be.
The Hargreaves Lansdown platform is primarily designed for DIY investors. What my clients tell me is that guidance, help, education and information from someone with more than 30 years of experience makes the whole process far less scary.
Text me on 07770 575122 or use the”request more info” box to find out more.
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122