Hargreaves Launches UK Retail MMF
A press release titled, "Hargreaves Lansdown launches UK's lowest-cost retail money market fund exclusively for clients as demand surges," tells us, "With more than £600bn of excess cash held in the UK and the four biggest banks paying an average of just 0.95%, it's clear many savers could be making their cash work harder. Over the last year, HL has invested more than £100m in its products and services, building out a distinctive range of savings and investment options around client needs. The HL Money Market Fund gives clients a cash-like way to invest, sitting alongside Active Savings and the HL Cash ISA." Doug Abbott, Chief Product Officer at Hargreaves Lansdown, comments, "More than 25 times as many HL clients invest in money market funds as they did five years ago, and they're set to become even more popular once the new Cash ISA rules come into force next April. For anyone exploring options for their cash, the HL Money Market Fund offers a lower-risk way to start investing, with the flexibility of same-day access and a higher expected return than you’d get in an easy access account with one of the big banks." The release states, "Despite increased demand, understanding of MMFs remains low. IA research found only 31% of Cash ISA holders have any knowledge of them, yet once given a clear explanation, 64% said they would consider investing in one. The HL Money Market Fund can be held across all investment accounts, so clients can keep money they may need soon readily available, alongside their longer-term money which can stay invested for growth." It adds, "HL is responsible for the overall management of the fund, with BNY Investments chosen as the delegated investment manager. We expect the fund to give one of the highest yields on the market after fund charges. The expected yield is 3.95%." The new fund: "has the lowest ongoing charge of any MMF in the UK retail market, at 0.06%;" "Offers same-day settlement; and is "`Available at a £1 fixed price during the offer period.... `Income is calculated daily and paid monthly."
