MoneyWeek story- Hargreaves Lansdown launches Global Equity Income fund

While I’m generally a fan of Global Equity Income funds, with over 50 already available, I’m not sure we need another one. I’m also cautious when platform providers venture into fund management—there's an argument to be made that these moves are more about boosting their revenues and grabbing a larger slice of the pie, rather than genuinely adding value for investors. Firms are often better off sticking to their core strengths.

Regarding this offering, the 0.79% ongoing charge isn’t particularly competitive, and when you add Hargreaves Lansdown’s steep 0.45% annual platform fee, the total cost rises to 1.24% per year, without advice. Under Consumer Duty, providers are expected to deliver fair value and act in the best interest of their clients. Given the availability of better value options, DIY investors may find this falls short. For those seeking advice, a good IFA can recommend established funds with the added benefit of ongoing, independent advice, all for a similar overall cost.

This latest fund offering from HL adopts a multi-manager approach, blending strategies from established equity income heavyweights. This structure is intended to mitigate risk and smooth out returns, potentially offering a more stable income profile than single-manager alternatives. Furthermore, the equity income sector remains an attractive proposition in the current climate, with interest rates potentially peaking and inflation still a concern, the allure of steady dividend income coupled with the potential for capital growth is undeniable. However, while the fund offers a streamlined solution for investors, it does come at a notable cost, with the combination of the fund's ongoing charge and platform fees, representing a significant annual cost for investors. For more hands-on investors, selecting a few complementary equity income funds might offer greater control and lower overall costs, however this will depend on an investor's time, expertise, and comfort with active management.