Hargreaves Lansdown (HL) has unveiled the multi-manager HL Global Corporate Bond Fund.
The strategy, which will begin trading on 20 July, has a 0.62% ongoing charges figure (OCF) in addition to applicable HL platform fees.
Forming part of the platform’s ‘Building Blocks’ stable, the strategy will invest at least 80% in investment-grade corporate bonds and up to 20% in other debt instruments.
See also: Hargreaves Lansdown axes raft of fees as competition heats-up
The HL managers responsible for the strategy are Richard Troue and David Smith. The fund will allocate portions of the fund to external managers from M&G, Invesco, Morgan Stanley, RBC BlueBay Asset Management and PIMCO.
It marks the first launch since Brown Shipley’s Toby Vaughan succeeded Lee Gardhouse as CIO earlier in July.
The firm expects the yield range to be 4 – 5%.
Fund manager Richard Troue said: “Every investor beyond the most adventurous should invest in this sector as part of a diversified portfolio. Rising interest rates and volatile equity markets have seen increased interest in corporate bonds. With expectations that interest rates could be nearing their peak, those buying into bonds now benefit from the higher yields being paid and benefit from capital gains as well.
“The HL Global Corporate Bond Fund is designed to be a building block, allowing everyone to become more diversified. We’re partnering with a blend of external fund managers, with different styles and areas of expertise. They’ve all demonstrated strong processes and delivered strong long-term returns for investors.”
