HL Select Global Growth Shares
Portfolio breakdown - find out exactly why we hold the shares listed below.
Full fund holdings
The portfolio shown is correct at 15/04/2026. Holdings may not show in certain circumstances, for example if we are building or reducing a position in a particular stock.
Portfolio weight: 0.68%
Description: 3M is a diversified materials and technology company. It invents, manufactures, and markets adhesives, tapes, abrasives, films, filtration media, personal protective equipment, and advanced materials for electronics, automotive, and manufacturing. Its businesses span Safety & Industrial, Transportation & Electronics, and Consumer products, including well‑known brands like Post‑it Notes and Scotch. 3M applies material science and process innovation to solve customer problems across factories, infrastructure, mobility, and homes worldwide.
Holding Rationale: The diversified American multinational conglomerate, operating across a wide range of industries, reinstated a new management team that has reset the bar for minimum results much higher and driving cost reduction by focusing on supply chain. The Safety business is a long term growth enabler, while electronics and transportation being more cyclical, continues to recover from Covid hangover.
Portfolio weight: 1.61%
Description: AbbVie Inc, is a global biopharmaceutical company that develops and markets advanced therapies for complex and serious diseases, focusing on areas such as immunology, oncology, neuroscience, and aesthetics. The company has a robust pipeline with multiple promising drugs, including Skyrizi and Rinvoq, which are expected to drive significant growth in the coming years.
Holding Rationale: AbbVie is a company which has diversified revenue streams, high-growth potential from its leading immunology drugs and executes strategic acquisitions that enhance its pipeline and market position. Additionally, AbbVie offers an attractive dividend yield and has demonstrated consistent financial performance although remember that yields are not a reliable indicator of future income and past performance is not a guide to the future.
Portfolio weight: 0.53%
Description: Accenture is a global professional services firm that helps companies and governments design, build, and run digital businesses. It combines strategy and consulting with technology and operations, delivering cloud migration, systems integration, custom software, data and AI, cybersecurity, and managed services. Its Accenture Song unit drives marketing and customer experience. The firm works across industries—financial services, healthcare, public sector, communications, retail, energy, and more—and partners with major cloud platforms to modernize core systems, optimize processes, and enable innovation at scale.
Holding Rationale: Accenture is a leader in AI and digital transformation. The company has pivoted to large-scale transformational deals and leveraged its deep domain expertise and strategic partnerships with leading tech firms like OpenAI and Palantir. Accenture's investments in AI, including its GenAI and AI Refinery platforms, are driving significant productivity gains and new revenue opportunities. Despite macroeconomic uncertainties, we believe Accenture's diversified portfolio and strong client relationships position it to capitalise on the growing demand for digital and AI solutions. The company's commitment to returning capital to shareholders further enhances its investment appeal.
Portfolio weight: 4.95%
Description: Amazon is a global technology, media and retail company. It operates a large online marketplace connecting first- and third‑party sellers to consumers, supported by a worldwide logistics and fulfilment network and Prime membership. It provides cloud computing, data, and AI services through AWS. Amazon also offers digital advertising, streaming media via Prime Video and Music, devices like Kindle, Fire TV, and Echo/Alexa, and runs physical retail, including Whole Foods and Amazon Fresh. Revenue comes from product sales, third‑party services, subscriptions, advertising, and AWS.
Holding Rationale: Amazon leads in three major growth areas: e-commerce, cloud computing, and advertising. In e-commerce, it offers a vast selection of products at competitive prices with fast delivery, making it a go-to for shoppers. In cloud computing, Amazon Web Services (AWS) is a top player, providing essential services for businesses to operate efficiently and innovate with AI. Its advertising business is also growing rapidly, helping brands reach millions of customers. We believe Amazon's continuous innovation, strong market position and focus on customer satisfaction drive its long-term growth potential.
Portfolio weight: 1.14%
Description: American Express is a global integrated payments company. It issues charge and credit cards to consumers and businesses; operates a merchant acceptance network; and provides payment processing, risk management, and data/marketing services to merchants. It offers premium rewards, travel and lifestyle services, corporate spend management, and working-capital solutions (e.g., virtual cards, expense tools). Revenue comes primarily from merchant discount fees, annual card fees, interest on lending, and service/FX fees. Amex focuses on affluent consumers and small & medium enterprises (SMEs), emphasising closed-loop data, fraud prevention, and customer service.
Holding Rationale: We believe Amex is able to grow its long-term billed business and outpace personal consumption expenditures due to the electronification of payments.. The company has maintained brand relevance with younger generations and increased the number of fee-paying and premium cards, which is expected to support its growth trajectory. We believe Amex’s international expansion, particularly in merchant coverage, presents significant growth potential.
Portfolio weight: 0.74%
Description: American Tower Corporation (AMT) is a leading global REIT (Real Estate Investment Trust) that owns, operates, and develops wireless and broadcast communications real estate, including towers and data centres. The company provides essential infrastructure for mobile carriers and other wireless service providers, facilitating the deployment and expansion of their networks.
Holding Rationale: AMT is supported by its robust leasing activity driven by accelerating mobile data consumption and 5G network densification. Additionally, the CoreSite subsidiary enhances growth prospects through its interconnection-rich data centres, which are well-positioned to capitalize on AI-driven demand. With strong financial management, including disciplined capital allocation and a secure balance sheet, we believe AMT is poised for sustainable long-term growth.
Portfolio weight: 1.06%
Description: Amphenol is a leading global designer and manufacturer of interconnect, sensor, and antenna solutions. It produces electrical, electronic, and fibre‑optic connectors; cable assemblies and wire harnesses; power and high‑speed interconnects; RF/microwave components; and sensors/antennas used in harsh and high‑reliability applications. Its products enable power, signal, and data transmission across automotive and e‑mobility, industrial automation, IT/datacom and cloud, mobile devices, broadband, commercial aerospace, and military markets.
Holding Rationale: Amphenol Corporation (APH) has a diversified revenue stream across various markets like data centres, automotive, and industrial sectors. We believe the company is well-positioned to benefit from the growing demand for AI and data centre infrastructure, especially with its recent acquisition of CommScope's CCS business, which enhances its optical connectivity capabilities. APH has a history of consistent earnings growth and strong financial performance, with a robust order book and high operating margins. The company's strategic acquisitions and leadership in high-speed and power interconnect products make it a key player in the evolving tech landscape. Overall, APH's strong market position, diversified growth, and strategic investments make it an attractive choice within the portfolio.
Portfolio weight: 0.50%
Description: Aon is a global professional services firm that helps organizations manage risk, access capital and support people. It provides insurance and reinsurance brokerage, risk advisory, and captives; cyber, credit, and specialty lines; and catastrophe modeling and analytics. Through Reinsurance Solutions it structures treaty/facultative and Insurance-linked securities. Health Solutions brokers employee benefits and wellbeing programs. Wealth Solutions advises on pensions, retirement, investments, and human capital/compensation. Aon combines brokerage, consulting, and data‑driven analytics to improve resilience and performance.
Holding Rationale: We believe Aon could see improved growth as it completes a restructuring and ramps up its hiring program. The company aims for mid-single-digit growth and consistent margin expansion, targeting 70-80 basis points annually. We believe Aon has a strong track record and a clear plan for future growth, making it well-positioned to deliver strong financial performance and shareholder value.
Portfolio weight: 1.96%
Description: ASML Holding designs and manufactures photolithography systems that pattern silicon wafers for semiconductor fabrication which is key to the drive in AI. It is the sole supplier of extreme ultraviolet (EUV) scanners and a leading supplier of deep ultraviolet (DUV) immersion tools. ASML also offers metrology/inspection and computational lithography software, plus upgrades and services for its installed base. Its technology—combining high‑precision optics, mechatronics, and plasma light sources—enables smaller, faster, more energy‑efficient chips for foundry, logic, and memory customers worldwide.
Holding Rationale: ASML holds a monopoly in EUV lithography, essential for leading-edge semiconductor manufacturing. The company is poised for growth, driven by strong demand in AI, data centres, and advanced logic. ASML's revenue is projected to reach €34-39 billion in 2026, with a gross margin of 51-53%. The transition to High NA EUV tools, expected to be adopted by both Logic and DRAM customers around 2027, further strengthens its market position. Despite geopolitical risks, including export controls to China, we believe ASML's diversified customer base and technological leadership mitigate these concerns.
Portfolio weight: 0.67%
Description: AT&T is a U.S. communications company providing wireless voice and data, 5G, and fibre broadband to consumers and businesses. It sells mobility plans and devices; offers fibre internet, Wi‑Fi, and IP voice; and delivers enterprise and wholesale connectivity, IoT (Internet of Things) and edge solutions. AT&T operates nationwide (in the U.S.) wireless and fibre networks, including FirstNet for first responders, and monetises access through retail, enterprise, and wholesale channels. Its strategy centres on expanding 5G and fibre while streamlining legacy copper and non-core assets.
Holding Rationale: AT&T's investing in enhancing network infrastructure and digital content delivery to bolster its competitive edge. Increased demand for high-speed connectivity and streaming services supports revenue growth and profitability. Along with a strong dividend yield, AT&T's commitment to debt reduction and operational efficiency further strengthens its financial position. Remember that yields are not a reliable indicator of future income.
Portfolio weight: 1.03%
Description: AutoZone is a leading retailer and distributor of automotive replacement parts and accessories. It serves do‑it‑yourself motorists and professional repair shops with aftermarket parts, maintenance items, tools, and fluids, sold through thousands of stores in the U.S., Mexico, and Brazil and via e‑commerce. It operates distribution, hub and megahub stores for rapid commercial delivery; offers services like battery testing, charging, oil recycling and loaner tools; and markets private brands such as Duralast. AutoZone also provides repair information software through ALLDATA.
Holding Rationale: AutoZone is making significant investments in its DIFM (Do-It-For-Me) commercial programs and accelerating new store openings, which are driving market share gains despite initial margin pressures. The aging US vehicle fleet and strong pricing power provide a stable demand backdrop, while the company's strategic investments in mega hubs and improved inventory availability are expected to yield long-term benefits. . We believe AutoZone's disciplined capital allocation and superior operational execution position it well for continued growth and market share expansion.
Portfolio weight: 0.47%
Description: Baker Hughes is an energy technology company. It provides oilfield services and equipment—well construction, completions, production optimisation, artificial lift, and chemicals—plus subsea and surface pressure control. Its Industrial & Energy Technology segment supplies turbomachinery and process solutions (gas turbines, compressors) for LNG, gas processing, power, and industry, along with condition monitoring, controls, and digital/AI asset performance platforms. The company also develops technologies for carbon capture, hydrogen, geothermal, and emissions management, helping customers reduce costs and decarbonise across the energy value chain.
Holding Rationale: Baker Hughes has a strong position in the Industrial Energy Technology (IET) segment. We believe the company's $13 billion acquisition of Chart Industries will enhance its competitive position, with IET contributing significantly to the earnings of the company in the near future. The company's diversified portfolio, including LNG, distributed power, and low-carbon solutions, positions it well for long-term growth. Additionally, the company is focused on high-margin, recurring revenue streams and has a robust order backlog, providing strong revenue visibility.
Portfolio weight: 1.06%
Description: Bank of America is a leading financial institution that provides a diverse range of banking and financial services, including consumer banking, wealth management, global banking, and global markets. The company leverages advanced technology, including AI and machine learning, to enhance customer experience and operational efficiency. It serves millions of clients worldwide, offering comprehensive solutions to meet their financial needs.
Holding Rationale: Bank of America has demonstrated consistent revenue and earnings growth driven by organic client activity and disciplined expense management. The company has a robust balance sheet with significant liquidity and capital return to shareholders through dividends and share repurchases, although these are not guaranteed. Additionally, we believe Bank of America's strategic investments in technology and AI position it for continued efficiency improvements and competitive advantage in the financial sector.
Portfolio weight: 1.31%
Description: Bristol Myers Squibb is a global biopharmaceutical company focused on discovering, developing, and delivering innovative medicines for patients with serious diseases in areas such as oncology, hematology, immunology, and cardiovascular disease. The company has a robust portfolio of growth products, including Opdivo, Reblozyl, Camzyos, and Breyanzi, and is actively expanding its pipeline through strategic partnerships and acquisitions.
Holding Rationale: Bristol Myers Squibb has a strong growth portfolio, which could offset declines from legacy products facing loss of exclusivity. Additionally, its strategic acquisitions and partnerships, such as the collaboration with BioNTech for a PD-L1/VEGF bispecific antibody, position the company well for future growth. We believe the company has an attractive valuation and potential for positive pipeline readouts further enhance its investment appeal.
Portfolio weight: 0.64%
Description: Burlington Stores is a U.S. off‑price retailer offering branded apparel, footwear, accessories, beauty, home, and baby goods at discounted prices. Operating hundreds of stores nationwide, it uses opportunistic buying, lean inventories, and rapid turns to deliver a treasure‑hunt shopping experience. Formerly Burlington Coat Factory, it emphasizes women’s and kids’ apparel, seasonal assortments, and everyday value, with limited e‑commerce and a focus on store productivity, flexible sourcing, and tight expense control.
Holding Rationale: Burlington Stores has demonstrated a historical track record of growing revenue and earnings, and its financial profile is cash generative. The company is implementing a Burlington 2.0 strategy, which includes self-help initiatives aimed at increasing productivity and expanding margins closer to peer levels over time. We believe Burlington’s relative valuation also offers an attractive entry point.
Portfolio weight: 1.66%
Description: CME Group operates leading derivatives marketplaces encompassing CME, CBOT, NYMEX, and COMEX. It lists futures and options across interest rates, equity indexes, FX, energy, metals, and agriculture—traded electronically on CME Globex and cleared through CME Clearing. CME also offers cash and OTC platforms (including EBS for FX and BrokerTec for rates), benchmark data services, and risk management solutions used by hedgers, asset managers, and proprietary traders worldwide.
Holding Rationale: CME Group reported record revenues and adjusted net income in 2025, driven by strong growth across asset classes, including interest rates, energy, and cryptocurrencies. CME's innovative product offerings, such as 24/7 cryptocurrency trading and prediction markets, are expected to attract new customer segments and drive future growth. Additionally, the company's focus on international expansion has resulted in record volumes from EMEA (Europe, Middle East & Africa) and APAC (Asia Pacific) regions. With a strong balance sheet, disciplined expense management, and strategic partnerships like the one with Google for cloud migration, we believe CME Group is well-positioned to capitalise on market opportunities and deliver sustained shareholder value.
Portfolio weight: 1.09%
Description: DBS Group is a market leading bank in Singapore, specializing in corporate and institutional banking, with a significant presence in Greater China, India, and Southeast Asia. The bank focuses on high-return businesses such as Wealth Management and Transaction Banking, leveraging its strong deposit franchise to maintain a funding advantage and support attractive risk-adjusted margins.
Holding Rationale: DBS is committed to returning excess capital to shareholders through dividends and share buybacks, supported by its high profitability and disciplined capital management although these are not guaranteed. Additionally, its strategic focus on capital-light, high-return segments and its investments in digitalization and AI are expected to drive sustainable profitability and efficiency.
Portfolio weight: 2.17%
Description: Deutsche Börse operates as a global market infrastructure provider, offering a diverse range of services including trading, clearing, settlement, and custody of securities. The company is involved in various segments such as Investment Management Solutions, Trading & Clearing, Fund Services, and Securities Services, providing technology-driven solutions for managing and administering alternative assets, including private equity, real estate, and infrastructure investments.
Holding Rationale: Deutsche Börse has a diversified business model, which has consistently delivered robust net revenue growth across multiple segments despite market volatility and FX headwinds. The company's strategic initiatives, including the integration of advanced digital platforms and the adoption of AI, could position it well to capitalise on emerging growth themes and maintain a steady performance trajectory. Additionally, Deutsche Börse's disciplined cost management and strategic investments ensure scalability and operational efficiency, further enhancing its attractiveness to us.
Portfolio weight: 0.53%
Description: Dominion Energy is a utility company that provides reliable, affordable, and increasingly clean energy to its customers, with a significant focus on regulated electric and natural gas utility operations. The company is actively involved in major projects such as the Coastal Virginia Offshore Wind (CVOW) project, which aims to deliver 2.6 gigawatts of electricity to Virginia's grid by the end of 2026.
Holding Rationale: Dominion Energy has a track record of strong execution on major projects, which de-risks its construction timeline and budget. The company is also poised to benefit from robust data centre demand and favourable regulatory outcomes, which support its long-term growth and capital investment plans. Additionally, Dominion Energy's strategic focus on balance sheet conservatism and maintaining strong credit metrics further enhances its attractiveness.
Portfolio weight: 0.60%
Description: Dover is a diversified industrial manufacturer delivering equipment, components, consumables, software, and services for mission‑critical applications. Its businesses span Pumps & Process Solutions, Imaging & Identification, Clean Energy & Fuelling, and Engineered Products, serving end markets such as food and beverage, hygienic and chemical processing, retail fuelling, packaging, and industrial automation. Dover operates a decentralised model emphasising continuous improvement, targeted acquisitions, and aftermarket revenue.
Holding Rationale: Dover Corporation has a diversified portfolio and strategic focus on high-growth markets. The company has shown resilience against economic cyclicality, with orders turning up and most markets expected to grow in 2026. Dover's recent restructuring into five business segments enhances operational management and transparency, driving margin expansion. The company is poised for organic growth, particularly in its printing, pumps, and climate/refrigeration segments, supported by environmental trends and new technologies. Additionally, we believe Dover's balanced capital deployment strategy, including opportunistic bolt-on acquisitions, further strengthens its growth prospects.
Portfolio weight: 1.73%
Description: Exxon Mobil is an integrated energy and chemical company. Upstream, it explores for and produces oil, natural gas, and LNG across global basins. Downstream, it refines crude into fuels and markets lubricants under the Mobil brand. Its chemical and product solutions businesses make petrochemicals, polymers, and performance products. The company leverages scale and technology while investing in lower‑carbon initiatives, including carbon capture and storage, hydrogen, and advanced biofuels.
Holding Rationale: Exxon Mobil is expected to see over $3 billion in earnings contributions from projects completed in 2025, including downstream investments in refining and chemicals, and upstream projects in Guyana and Brazil. XOM's strong execution in core upstream areas, particularly in the Permian, is anticipated to yield significant synergies, potentially doubling initial expectations. Additionally, the company is focused on cost reductions and improved productivity, targeting $20 billion in structural savings by 2030. XOM offers attractive returns of capital, with dividends which have grown steadily and buybacks, supported by a robust balance sheet and AA- credit rating. Although these returns are not guaranteed. The company's diversified exposure to upstream, refining, and chemicals, along with its low carbon solutions business, further strengthens its long-term growth prospects.
Portfolio weight: 0.43%
Description: Fidelity National Information Services is a global leader in financial technology solutions, providing a wide range of services to the banking and financial sectors. The company specialises in core banking, payments, digital solutions, and capital markets. The company leverages its proprietary data sets, longstanding relationships with banking customers, and specialised regulatory and compliance infrastructure to deliver innovative solutions, including AI-powered capabilities for fraud prevention, deposit and lending growth, and operational efficiency.
Holding Rationale: Fidelity National Information Services has delivered strong financial performance, with consistent revenue and earnings growth, and a robust free cash flow conversion . We believe the company is well-positioned to benefit from industry trends such as increased bank consolidation and the rapid adoption of AI in financial services. Additionally, FIS's strategic acquisitions and disciplined capital allocation are expected to drive further growth and margin expansion.
Portfolio weight: 0.34%
Description: Gold Fields is a global gold producer headquartered in South Africa. It operates long‑life, low‑cost mines across Australia, Ghana, South Africa, and the Americas, and advances new projects to sustain output. The company focuses on mechanised open‑pit and underground operations, disciplined capital allocation, cash generation, and strong safety and environmental practices.
Holding Rationale: Gold Fields is experiencing strong cash generation due to elevated gold prices, with a focus on disciplined capital allocation and conservative planning. The company aims to maintain upper-quartile shareholder returns, targeting a 35% payout of free cash flow before discretionary investments. Although this is not guaranteed. Key growth drivers include the ramp-up of Salares Norte and the Windfall project in Canada, with first gold anticipated in early 2029. Gold Fields is well-positioned with a diversified asset portfolio and a strong balance sheet, allowing flexibility in capital spending and potential asset sales if needed. The company’s strategic focus on high-quality jurisdictions and asset optimisation supports its long-term growth and value creation goals.
Portfolio weight: 0.35%
Description: HDFC Bank is one of India’s largest private‑sector banks, offering retail and wholesale banking. Products include deposits, payments, credit cards, personal and auto loans, SME financing, mortgages, corporate lending, trade and cash management, and treasury services. With a large branch network and digital platforms, it emphasises asset quality, low‑cost deposits, and analytics‑driven underwriting. Its merger with mortgage lender HDFC Ltd. expanded housing finance capabilities and cross‑sell across a broad customer base.
Holding Rationale: HDFC Bank is a top-quality franchise in India's attractive banking market, poised for solid and reliable growth. We believe the bank's earnings can compound strongly annually over the next years, supported by a well-diversified loan portfolio, easing liquidity pressures, steady profitability, and a strong capital base. The bank's management team is experienced and capable.
Portfolio weight: 0.19%
Description: Heineken is a global brewer producing beer and cider, led by the Heineken brand alongside Amstel, Tiger, Desperados, Sol, and Strongbow. It operates breweries and distribution networks across Europe, the Americas, Africa, and Asia, with growing no‑ and low‑alcohol offerings. The company focuses on brand building, premiumisation, and efficient route‑to‑market, supplying on‑trade (bars, restaurants) and off‑trade (retail) channels.
Holding Rationale: Heineken's commitment to reducing costs and headcount are driving productivity improvements, and beer volumes are expected to be resilient despite alcohol sales more broadly declining. Strong low- and no-alcohol brands are a tailwind, as well as exposure to emerging markets where beer sales are expanding. 2026 may also offer some short-term boosts to earnings with the football World Cup and materialising cost efficiencies.
Portfolio weight: 1.01%
Description: Hong Kong Exchanges & Clearing operates the only stock and futures exchange and clearing houses in Hong Kong, serving as a key capital conduit connecting mainland China and the world. The company aims to be the market of choice in the Asian time zone and remains a gateway for capital flows to and from China. HKEx leverages its strategic position to facilitate access for foreign investors to China (Northbound) and for Chinese investors to the rest of the world (Southbound).
Holding Rationale: Hong Kong Exchanges & Clearing is a cash-generative, growth business with minimal balance sheet risks and high profitability. The company benefits from structural advantages such as economies of scale and vertical integration, which support its high margins and cash dividend payout ratios. Additionally, it has significant revenue optionality through the expansion of existing Connect programs and the potential return of China ADRs, which could substantially enhance its revenues if Mainland China policy choices align favourably.
Portfolio weight: 1.84%
Description: Johnson & Johnson is a diversified healthcare company operating through two main segments: Innovative Medicine and MedTech. The Innovative Medicine segment focuses on therapeutic areas such as immunology, oncology, neuroscience, and cardiovascular diseases, while the MedTech segment includes products for cardiovascular, orthopaedics, surgery, and vision care.
Holding Rationale: Johnson & Johnson has a strong and diversified product portfolio, robust financial health and consistent growth prospects. The company has a track record of delivering solid revenue growth, driven by its innovative pipeline and strategic acquisitions, such as Abiomed and Shockwave. Additionally, its commitment to returning value to shareholders through dividends and share buybacks, coupled with its low leverage and strong free cash flow generation, makes it an attractive investment for us. Although returns are not guaranteed.
Portfolio weight: 1.10%
Description: Keyence is a company involved in discrete automation, providing products and solutions that enhance manufacturing processes. They have a strong presence in the automation sector, with a focus on both edge and digital technologies, as evidenced by their recent acquisition of the German company Cadenas.
Holding Rationale: Keyence is experiencing robust sales growth and margin improvement prospects. We believe the company is positioned to see accelerated sales growth and recovery in the semiconductor market, which bodes well for future performance. Additionally, Keyence's strong cash position and potential for increased shareholder returns through dividends and buybacks present significant upside potential.
Portfolio weight: 1.63%
Description: Lowe’s is a home improvement retailer serving DIY customers and professional contractors. It sells building materials, hardware, tools, appliances, décor, lawn and garden, and services like installation and project financing. With thousands of U.S. stores and e‑commerce, Lowe’s emphasizes in‑stock assortments, pro loyalty programs, supply chain efficiency, and omnichannel fulfilment.
Holding Rationale: Lowe's Companies has demonstrated consistent performance, showing strong sales and strong margin management despite a challenging macro environment. We think Lowe's strategic acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) position it well to capture growth in the professional market and new home construction, expanding its total addressable market. We believe the company's focus on productivity improvements and technology enhancements, including AI-driven tools, further supports its growth potential. With a healthy balance sheet and a commitment to shareholder returns, Lowe's is poised to benefit from a recovery in the housing market and home improvement demand.
Portfolio weight: 1.05%
Description: LVMH Moët Hennessy Louis Vuitton is a global leader in luxury goods, encompassing a diverse portfolio of over 75 prestigious brands across sectors such as fashion and leather goods, wines and spirits, perfumes and cosmetics, watches and jewellery, and selective retailing. The company is renowned for its commitment to quality, craftsmanship, and innovation, with iconic brands like Louis Vuitton, Dior, and Tiffany driving its market presence.
Holding Rationale: LMVH continues to invest in its brands and infrastructure with the aim of ensuring long-term sustainable growth. Additionally, LVMH's strategic focus on efficiency and innovation positions it well to capitalise on future market opportunities and maintain its leadership in the luxury sector.
Portfolio weight: 0.12%
Description: Marriott is a global hotel company that manages and franchises lodging brands across luxury, premium, and select‑service segments, plus extended‑stay. Its portfolio includes Marriott, Ritz‑Carlton, St. Regis, Sheraton, Westin, Courtyard, and more. Revenue comes from management and franchise fees, plus owned/leased properties. Its Marriott Bonvoy loyalty program drives demand, while asset‑light growth scales globally.
Holding Rationale: Marriott International has a robust growth strategy and has delivered strong financial performance. The company's focus on high-end and international markets positions it defensively against economic downturns, with higher-end segments showing resilience. The company's loyalty program, Marriott Bonvoy, has grown significantly, boasting 271 million members, enhancing customer retention and revenue. Additionally, the anticipated increase in co-branded credit card fees due to a new deal in 2026 is expected to boost operating income. MAR's ongoing investments in technology and AI are set to improve operational efficiency and customer experience, driving long-term growth. With a strong pipeline and strategic acquisitions like citizenM, we believe the company is well-positioned for sustained growth and shareholder value creation.
Portfolio weight: 3.39%
Description: Mastercard is a global technology company in the payments industry, providing a range of services including payment processing, cybersecurity solutions, and data analytics to consumers, financial institutions, and businesses worldwide. The company leverages its extensive network of nearly 100 million acceptance locations to facilitate secure and efficient transactions, while continuously innovating with new technologies such as agentic commerce and stablecoins.
Holding Rationale: We believe the investment case for holding Mastercard in a portfolio is strong due to its consistent revenue growth driven by increasing global digital payment adoption and value-added services. Mastercard's robust business model, characterised by diversified revenue streams and strategic partnerships, positions it well to navigate and capitalise on the evolving payment landscape. Additionally, we believe the company's focus on innovation and expansion into new markets and technologies ensures long-term growth potential and resilience against emerging competitive threats.
Portfolio weight: 1.81%
Description: McDonald’s is a global quick‑service restaurant franchisor known for burgers, chicken, breakfast, and beverages. The vast majority of restaurants are franchised, generating rent and royalty income, with a smaller company‑operated base. The model emphasises consistent operations, value menus, digital ordering, delivery partnerships, and kitchen/process standardisation to drive speed, convenience, and profitability.
Holding Rationale: McDonald's focus on value through initiatives like McValue and Extra Value Meals has resonated well with consumers, driving traffic and market share gains, particularly among low-income consumers. McDonald's has also seen significant growth in its loyalty program and is expected to reach 250 million 90-day active users by 2027. The company's highly franchised model provides low direct cost exposure while benefiting from higher royalties, making it resilient in a slowing consumer environment. With a strong innovation pipeline and robust financial performance, we believe McDonald's is well-positioned to continue capturing market share and driving growth.
Portfolio weight: 1.00%
Description: Medtronic is a global leader in medical technology, offering innovative products and therapies to alleviate pain, restore health, and extend life. The company operates across several segments, including Cardiovascular, Neuroscience, Medical Surgical, and Diabetes, with a strong focus on medtech innovation and product development.
Holding Rationale: Medtronic has experienced strong revenue growth, improved margins, and successful new product launches in the cardiovascular space that highlight its innovation capabilities. This also positions the company well for continued financial momentum and growing share in an expanding category. Its consistent mid-single-digit revenue growth has been driven by strong performance in key areas like Cardiac Ablation Solutions and Diabetes, as well as its strategic initiatives to enhance shareholder value through portfolio optimisation and operational efficiency. Additionally, the company's proactive engagement with Elliott Management and the formation of new board committees to focus on growth and operational performance further bolster its potential for sustained earnings acceleration and long-term value creation.
Portfolio weight: 3.15%
Description: Meta Platforms operates social media and communications platforms including Facebook, Instagram, WhatsApp, and Threads, serving billions of users. It monetises primarily through targeted digital advertising and increasingly through business messaging and creator tools. Meta invests in AI for recommendations and ads, and in augmented/virtual reality via Reality Labs (Quest devices, metaverse technologies).
Holding Rationale: Meta Platforms is positioned for significant growth driven by its aggressive investments in AI infrastructure and talent. The company is leveraging AI to enhance core business operations, including improved ad targeting and personalised content recommendations, which have already led to increased engagement and ad performance. Meta's AI initiatives can unlock new revenue streams, such as business messaging and AI-driven products, while maintaining strong returns from its core business. Despite high spending, the company anticipates operating income growth in 2026 that is above 2025 levels, supported by robust revenue growth and efficient capital allocation. Additionally, Meta's strategic focus on AI glasses and wearables is expected to drive future growth and profitability. Overall, we believe that Meta's differentiated revenue growth and potential for multiple AI-driven opportunities make it an attractive investment for the portfolio.
Portfolio weight: 0.76%
Description: The company operates in the memory semiconductor industry, focusing on providing advanced memory solutions critical for the ongoing artificial intelligence (AI) revolution. The company has secured long-term agreements, including a five-year strategic customer agreement, giving it visibility into customer requirements and roadmaps. The company is aiming to maintain disciplined capital expenditures, increase dividends, reduce debt, and plans to buy back stock
Holding Rationale: The investment rationale centres on the company’s position at the centre of the strongest upcycle in memory history, fuelled by AI-related demand. The gap between supply and demand is unprecedented, and industry capacity is not expected to ramp significantly until 2028, suggesting continued tightness and potential for upward estimate revisions through early 2027. The near-term momentum and strong AI-driven demand support a positive stance.
Portfolio weight: 4.72%
Description: Microsoft develops, licenses, and supports a wide range of software products, services, and devices, including operating systems, server applications, productivity applications, business solutions, and cloud-based offerings. The company also offers hardware products such as PCs, tablets, and gaming consoles, and services like LinkedIn and Azure cloud solutions, which integrate advanced AI models from OpenAI.
Holding Rationale: Microsoft has a leading position in enterprise and consumer software markets, bolstered by its exclusive partnership with OpenAI, which enhances its AI capabilities and market share in cloud services. The company's robust financial performance, with significant revenue growth and strong free cash flow, supports its ability to invest in future growth areas like AI and cloud computing. Additionally, Microsoft's diversified product portfolio and continuous innovation provide a resilient and expansive growth trajectory, making it a valuable addition to our investment portfolio.
Portfolio weight: 0.71%
Description: Mitsubishi UFJ Financial Group is one of Japan’s largest financial institutions. It offers retail and commercial banking, corporate and investment banking, trust banking, securities, and asset management. With a global network across Asia, the Americas, and Europe, MUFG provides lending, transaction banking, markets, advisory, and wealth solutions for individuals, SMEs, and multinational corporates.
Holding Rationale: Mitsubishi UFJ Financial Group is supported by strong earnings momentum from corporate businesses and higher rates. The bank is one of Japan's strongest domestic deposit takers with the most geographically diversified operations among major banks. Its strategic investments in digital banking and asset management, along with its partnership with Morgan Stanley, further bolster its growth prospects. Despite higher expense ratios from inflation and strategic investments, the bank's core earnings remain strong.
Portfolio weight: 0.86%
Description: Morgan Stanley is a global financial services firm that provides a wide range of investment banking, securities, wealth management, and investment management services. The company operates through three main business segments: Institutional Securities, Wealth Management, and Investment Management, serving clients worldwide, including corporations, governments, financial institutions, and individuals.
Holding Rationale: Morgan Stanley is delivering a strong financial performance, demonstrated by record revenues and earnings, and a robust return on tangible equity (ROTCE). The firm's integrated business model, strategic investments in technology and AI, and a strong capital position provide a foundation for sustainable growth and resilience against economic uncertainties. Additionally, Morgan Stanley's commitment to returning capital to shareholders through dividends and share buybacks further enhances its attractiveness as an investment although these are not guaranteed.
Portfolio weight: 1.87%
Description: Muenchener Rueckversicherungs‑Gesellschaft (Munich Re) is a leading global reinsurer. It provides property‑casualty and life/health reinsurance, specialty and cyber covers, and capital‑relief solutions. Through ERGO, it also operates primary insurance. Munich Re leverages catastrophe modeling, risk analytics, and diversified portfolios to offer capacity, structuring, and risk transfer across geographies and lines.
Holding Rationale: Munich Re has consistently delivered robust earnings, with a net income of €6.1 billion in 2025, supported by disciplined underwriting and active investment management. The diversified business model, including Global Specialty Insurance, life reinsurance, and ERGO, contributes to stable earnings and reduces dependency on the cyclical P&C reinsurance segment. Additionally, Munich Re's capital management is robust, with a Solvency II ratio of 298% as of 31 December 2025, indicating strong financial health and potential for future buybacks. The company's commitment to returning capital to shareholders is evident through substantial dividend increases and share buybacks although this is not guaranteed.
Portfolio weight: 0.50%
Description: NatWest Group is a UK‑focused banking group serving retail, SME, and commercial customers through brands including NatWest, Royal Bank of Scotland, and Ulster Bank (Northern Ireland). It offers current accounts, savings, mortgages, personal and business loans, payments, cards, and treasury/cash management. The bank emphasizes digital channels, risk discipline, and supporting UK economic activity.
Holding Rationale: We believe NatWest remains attractively valued despite having a strong stock price rally in 2025, and there continue to be positive tailwinds for the company, including higher-for-longer interest rates benefiting net interest income and the recent acquisition of Evelyn Partners, a large UK Wealth Manager. A strong balance sheet also allows for significant dividend yields and potential buybacks although these are not guaranteed.
Portfolio weight: 2.07%
Description: NextEra Energy is a leading clean energy company that develops, builds, and operates energy infrastructure, including renewable energy projects such as wind and solar, as well as gas and nuclear power plants. The company operates through its two primary subsidiaries: Florida Power & Light Company (FPL), which serves the state of Florida, and NextEra Energy Resources (NEER), which focuses on renewable energy and storage projects across the United States.
Holding Rationale: NextEra Energy has a track record of delivering consistent earnings growth, supported by a favourable regulatory environment in Florida and a significant backlog of renewable projects. Additionally, we believe NextEra's commitment to expanding its renewable energy portfolio and its strategic initiatives, such as the recent partnership with Google for the Duane Arnold nuclear plant, position it well for long-term growth and value creation.
Portfolio weight: 0.61%
Description: Novo Nordisk is a global biopharmaceutical company specializing in diabetes and obesity care, and therapies for rare endocrine and blood disorders. Its portfolio includes insulins and GLP‑1‑based medicines for glycemic control and weight management, alongside devices for drug delivery. The company focuses on large‑scale biologics manufacturing, clinical innovation, and expanding patient access.
Holding Rationale: Novo Nordisk saw share prices fall dramatically after competitors expanded their market share in the obesity drug market, as well as some disappointing trial results demonstrating newer competitors had more effective drugs. Despite this, the overall market for obesity drugs continues to grow and Novo maintain a strong market share.
Portfolio weight: 8.39%
Description: NVIDIA is a leading technology company specialising in the design of graphics processing units (GPUs) and AI computing systems. Their products are widely used in various sectors, including data centres, gaming, professional visualisation, and automotive industries, with a strong focus on AI and machine learning applications.
Holding Rationale: NVIDIA has a dominant position in the rapidly growing AI and data centre markets, supported by robust demand for its Blackwell and Hopper GPU architectures. We believe the company's strategic partnerships, such as with OpenAI, and its continuous innovation in AI infrastructure and networking solutions, position it well for sustained growth. Additionally, NVIDIA's strong financial performance, including record revenues and significant shareholder returns, underscores its potential for long-term value creation.
Portfolio weight: 1.13%
Description: PepsiCo is a global food and beverage company with brands spanning snacks and drinks. Its portfolio includes Lay’s, Doritos, Cheetos, Quaker, and Ruffles, and beverages such as Pepsi, Mountain Dew, Gatorade, 7UP (in select markets), and Aquafina. It leverages integrated manufacturing, distribution, and marketing to drive category growth, premiumisation, and healthier options.
Holding Rationale: Despite recent volume struggles, due to high pricing, the company is expected to leverage its scale and brands to return to volume growth by late 2026 or 2027. We believe PepsiCo's valuation is currently at a historical low relative to competitors, offering less downside risk compared to the broader staples group. The company's focus on innovation, cost-cutting, and strategic acquisitions, such as Poppi, positions it for long-term growth. Overall, PepsiCo's strong market position, strategic initiatives, and potential for improved governance make it an attractive investment.
Portfolio weight: 1.20%
Description: Rio Tinto is a global mining and metals company producing iron ore, aluminium (including bauxite and alumina), copper, and minerals like lithium, borates, and titanium dioxide. With major operations in Australia and the Americas, it supplies materials critical to construction, transport, energy transition, and consumer goods. It focuses on safety, cost competitiveness, and decarbonisation.
Holding Rationale: Rio Tinto is a leading global mining company with a diversified portfolio, including significant operations in iron ore, copper, and aluminium. Despite challenges, Rio Tinto is well-positioned for future growth, driven by the ramp-up of key projects like Oyu Tolgoi and Simandou. The company’s focus on renewable energy sourcing and decarbonisation efforts further enhances its long-term sustainability and resilience to climate risks. Additionally, Rio Tinto's strong balance sheet and attractive shareholder returns, with a consistent dividend payout policy (not guaranteed), make it a compelling investment option in the mining sector.
Portfolio weight: 1.49%
Description: Safran is a global aerospace and defence company that specialises in aircraft propulsion, equipment, and interiors, as well as defence electronics and space. The company has a strong market position in both original equipment and aftermarket services, particularly with its CFM56 and LEAP engines, which are widely used in narrow-body aircraft. Safran is also expanding its capabilities through strategic acquisitions and partnerships, such as the recent acquisition of Collins actuation and flight control activities.
Holding Rationale: Safran is benefitting from the ongoing recovery in the aerospace market, which is expected to drive significant growth in both aftermarket and original equipment segments. Airlines are retaining existing stock for longer which requires more spending on repairs and maintenance and this is a high margin part of Safran’s business. Additionally, Safran's focus on returning cash to shareholders through dividends and share repurchases, along with its strategic M&A activities, makes it an attractive option although these are not guaranteed.
Portfolio weight: 0.45%
Description: Samsung Electronics is a leading global manufacturer in the memory semiconductor industry. The company’s operations are supported by multi-phase, multi-year expansion programs extending into 2030, and it maintains strong relationships across ecosystems by balancing profitability and fair distribution. Samsung’s memory products are integral to AI inferencing and high-performance computing applications.
Holding Rationale: The investment rationale for Samsung Electronics centres on its “Super Windfall” year, driven by supply tightness and surging demand for memory products, especially in AI and server applications. Dynamic Random Access Memory (DRAM) is a type of volatile semiconductor memory that serves as the main working memory in modern computers, laptops, servers, and smartphones. We believe operating margins for conventional DRAM are attractive and smartphone memory is experiencing vertical huge growth rates. The company is also accelerating capital expenditures (CapEx). The tight supply, high profitability, and technology leadership position Samsung as a key beneficiary of ongoing AI adoption and memory demand, supporting a positive earnings momentum and strong financial performance in the near term.
Portfolio weight: 1.37%
Description: Charles Schwab is a leading retail brokerage and custody provider for individual investors and independent advisors (RIAs). It offers trading, wealth management, advisory platforms, bank services, and cash management. Revenue comes from net interest income on client cash, asset‑based fees, and trading/other fees. Schwab emphasizes low‑cost investing, digital tools, and scale.
Holding Rationale: Charles Schwab has demonstrated resilience with a diversified business model, leading positions in self-directed and adviser channels, and a proactive approach to balance sheet management. The company’s focus on expanding its product offerings, including alternatives, crypto, and lending, enhances its value proposition, particularly among younger demographics. The company's strategic investments in AI and digital platforms aim to improve advisor productivity and client engagement, positioning it well against competitors. The company's ability to maintain positive operating leverage and capitalise on market opportunities further supports its long-term growth trajectory in our view.
Portfolio weight: 0.50%
Description: ServiceNow provides a cloud platform for digital workflows that automate and connect enterprise processes. Its products span IT Service Management, IT Operations, Security Operations, Customer and Field Service, HR Service Delivery, and low‑code apps on the Now Platform. Customers use ServiceNow to standardise data, orchestrate work, integrate systems, and improve efficiency and experiences.
Holding Rationale: ServiceNow is a leader in cloud workflow automation, offering a platform that enhances technological efficiency and consolidates spend across diverse systems. The company is well-positioned to benefit from the growing adoption of AI, with its Now Assist and Pro Plus products driving significant growth. We believe ServiceNow's ability to integrate across various data sources and systems of record, combined with its strong customer relationships, positions it for sustained and strong levels revenue CAGR in the near term. The company's recent acquisitions, including Moveworks and Armis, are strategic moves to enhance its AI and security capabilities, further solidifying its market position. With a robust pipeline, strong execution, and a focus on innovation, ServiceNow is in a position to continue delivering durable growth and margin expansion, making it an attractive long-term investment.
Portfolio weight: 2.15%
Description: Shell is an integrated energy and petrochemicals company. It explores and produces oil and natural gas; supplies LNG; refines and markets fuels and lubricants; and produces petrochemicals. Shell also trades energy commodities and invests in lower‑carbon solutions such as biofuels, hydrogen, renewable power, and carbon capture, supporting energy security and decarbonisation.
Holding Rationale: Shell has a strategic focus on enhancing shareholder value through disciplined capital allocation, cost reductions, and asset sales. The company aims to deliver a 10% compound annual growth rate in free cash flow per share by 2030, supported by its leading LNG franchise and growth in the Marketing segment. Shell's commitment to returning 40%-50% of cashflow from operating activities to shareholders through dividends and buybacks underscores its strong capital return strategy although these are not guaranteed. Additionally, the company is actively restructuring underperforming assets in chemicals and renewables, which could boost free cash flow. With a robust balance sheet and a focus on operational efficiency, Shell is well-positioned to navigate market volatility and capitalise on growth opportunities.
Portfolio weight: 0.57%
Description: Sony Group is a diversified global company primarily engaged in the entertainment, technology, and financial services sectors. The company operates in various segments including Game & Network Services, Music, Pictures, Electronics Products & Solutions, Imaging & Sensing Solutions, and Financial Services, with a significant focus on content creation and distribution across games, music, and films.
Holding Rationale: Sony is successfully transforming into a content-driven business, which now accounts for 60% of its profit mix, and offers robust free cash flow generation, which supports both growth investments and enhanced shareholder returns. Additionally, Sony's strategic partnerships and acquisitions, such as those with Bandai Namco and Kadokawa, are expected to drive further synergies and growth in its entertainment segments.
Portfolio weight: 1.20%
Description: Stryker is a medical technology company focused on orthopaedics, MedSurg, and neurotechnology/spine. It develops implants for joint replacement and trauma, surgical equipment and navigation, endoscopy, patient handling and emergency medical equipment, and neurovascular devices. Stryker pairs R&D with acquisitive growth and supports hospitals and surgery centres with integrated systems and aftermarket services.
Holding Rationale: Stryker Corporation (SYK) has reported impressive organic sales growth of 10.3% for 2025, surpassing $25 billion in sales. Key growth drivers include the successful launch of Mako 4, which has bolstered Stryker's leadership in orthopaedic robotics, and the continued expansion of its Trauma and Extremities business with the Pangea Plating System. Additionally, the integration of Inari Medical is expected to enhance Stryker's vascular division, contributing to long-term growth. The company's focus on operational excellence and margin expansion, despite tariff headwinds, underscores its resilience and ability to deliver consistent financial performance. With a strong balance sheet and a healthy deal pipeline, we believe Stryker is well-positioned for sustained growth and value creation for shareholders.
Portfolio weight: 2.38%
Description: Taiwan Semiconductor Manufacturing Company (TSMC) is a leading global semiconductor manufacturer based in Taiwan, specialising in the production of integrated circuits and wafer fabrication for a wide range of applications, including smartphones, high-performance computing (HPC), and automotive industries. The company is renowned for its advanced process technologies, such as 3-nanometer and 5-nanometer nodes, which contribute significantly to its revenue.
Holding Rationale: TSMC has a dominant market position, robust demand for leading-edge technologies, and impressive financial performance, including high gross margins and consistent revenue growth. TSMC's strategic investments in advanced manufacturing capabilities and global expansion plans further enhance its competitive advantage and growth potential, making it a compelling addition to the portfolio. Additionally, we think the company's ability to navigate geopolitical risks and maintain strong customer relationships underscores its resilience and reliability as an investment.
Portfolio weight: 0.99%
Description: Tokio Marine is a global insurance group headquartered in Japan, offering property‑casualty and life insurance. It operates domestically and through international subsidiaries (e.g., specialty and commercial lines in the U.S. and Europe). The company provides auto, homeowners, commercial, marine, and specialty coverages, emphasising underwriting discipline, risk management, and diversified geographic exposure.
Holding Rationale: Tokio Marine Holdings has demonstrated robust earnings growth, with adjusted net income for FY 2024 reaching ¥608.9 billion, and a projected increase to ¥700 billion for FY 2025, driven by strong international business performance and rate increases in Japan Property & Casualty insurance. Tokio Marine's disciplined capital management includes a significant share buyback plan of ¥220 billion for FY 2025 and a dividend per share increase to ¥210, reflecting a 22% growth although these are not guaranteed. The company's strategic focus on M&A and risk management further strengthens its investment appeal.
Portfolio weight: 0.76%
Description: Toyota is a global automaker producing cars, SUVs, trucks, and commercial vehicles under Toyota and Lexus. It pioneered hybrid technology (e.g., Prius) and develops a mix of electrified options—hybrids, plug‑in hybrids, battery EVs, and fuel‑cell vehicles—alongside advanced safety and driver‑assist systems. Toyota emphasises reliability, manufacturing excellence via the Toyota Production System, and continuous improvement. It also invests in connected services, software, and mobility solutions, including robotics and autonomous research.
Holding Rationale: Toyota is implementing a “multi-pathway” electrification strategy. Toyota’s strong annual sales in key markets such as North America and India underscore strong demand. Notably, Toyota is one of the few global Original Equipment Manufacturers (OEMs) successfully maintaining or growing market share in regions where Chinese competitors are expanding, further supporting our positive outlook with an attractive valuation signal.
Portfolio weight: 2.10%
Description: Trane Technologies is a climate‑control company providing heating, ventilation, air conditioning (HVAC), and refrigeration solutions. Through brands like Trane and Thermo King, it serves buildings and transport refrigeration. Offerings include high‑efficiency systems, controls, services, and sustainability solutions that reduce energy use and emissions, supporting decarbonisation and indoor environmental quality.
Holding Rationale: Trane Technologies has rebuilt its business strategy and product technology, emerging stronger with a complete product refresh. We believe the company is well-positioned to outpace its HVAC peers, leveraging its ability to gain market share and drive pricing. Trane's focus on service contracts linked to new applied sales helps reduce cyclicality. The company's strong cash generation profile and disciplined capital allocation strategy, including bolt-on acquisitions and share repurchases, further enhance its earnings potential.
Portfolio weight: 0.76%
Description: United Rentals is the largest equipment rental company in North America. It rents aerial work platforms, earthmoving equipment, material handling, trench safety, power and HVAC, pumps, and tools to construction, industrial, and specialty end markets. The company emphasises fleet scale, branch density, telematics, and services to improve customer uptime and jobsite productivity.
Holding Rationale: We believe United Rentals is positioned to outpace the market and expand its market share due to its scale advantages, offering a one-stop-shop model with better equipment availability and lower downtime. The company's specialty rental business is a key growth driver, enhancing product breadth and providing solutions-driven sales. URI's focus on specialty rentals positions it well for continued market share gains and higher returns on capital. The company is also expected to benefit from megaproject activity and capital deployment through acquisitions with mid-teens cash-on-cash returns. Despite some margin pressures, URI's ability to grow specialty rentals and maintain a strong balance sheet supports its long-term growth prospects.
Portfolio weight: 1.04%
Description: UnitedHealth Group is a diversified healthcare company that operates through four segments: UnitedHealthcare, which provides health benefits; Optum Health, which offers care delivery and management; Optum Insight, which provides data and analytics services; and Optum Rx, which offers pharmacy care services. The company focuses on improving healthcare outcomes and reducing costs through value-based care models and advanced data analytics.
Holding Rationale: UnitedHealth Group has a dominant position in the healthcare sector, offering diversified revenue streams, and is committed to long-term growth through strategic investments in technology and value-based care. The company's proactive approach to addressing operational issues and its focus on sustainable growth further support its investment appeal.
Portfolio weight: 0.88%
Description: U.S. Bancorp is a US financial services and banking group. It offers consumer and commercial banking, credit cards, mortgages, payments, and wealth management. Its payments business (including merchant acquiring via Elavon) provides card processing and gateways. With a multi‑state branch and strong digital presence, it focuses on low‑cost deposits, prudent credit, and fee diversification.
Holding Rationale: U.S. Bancorp benefits from economies of scale in IT and has a strong presence in payments, with significant revenues coming from this segment. Despite past challenges, including the UnionBank acquisition, the bank is poised for meaningful share repurchases in 2026. New management under CEO Gunjan Kedia aims to revive growth, particularly in the payments business. We believe the bank's strategic focus on efficiency improvements and organic growth, coupled with potential regulatory relaxation, positions it well for future expansion and shareholder value creation.
Portfolio weight: 0.48%
Description: Ventas, Inc. is a health care real estate investment trust (REIT) with a primary focus on senior housing. The company operates a Senior Housing Operating Portfolio (SHOP), which represents over half of its business. Ventas owns and manages senior housing properties in both the United States and Canada, with high occupancy rates. The company is actively expanding its portfolio through acquisitions, having recently completed significant transactions at attractive yields below replacement cost. Ventas benefits from favourable demographic trends, particularly the rapidly growing over-80 population
Holding Rationale: The investment rationale for Ventas centres on its strong positioning to capitalise on a multi-year demographic tailwind, as the over-80 population is projected to grow by 28% in the next five years. This surge in demand, combined with record-low senior housing supply, provides significant occupancy and pricing power. We believe Ventas’ SHOP platform has demonstrated industry-leading growth, yet still has room for further improvement. The company’s disciplined acquisition strategy, also supports continued external growth. Ventas is also deleveraging, improving its balance sheet while maintaining ample liquidity. Overall, Ventas offers a compelling combination of growth, return, and financial strength in a sector with long-term structural demand drivers.
Portfolio weight: 1.11%
Description: Volvo AB is a global company known for manufacturing automobiles, trucks, buses, and construction equipment. It operates in the transportation and automotive industries, providing a wide range of products including heavy-duty trucks, construction equipment, and marine engines.
Holding Rationale: Volvo has a strong and established market position in the US and European heavy-duty truck and construction equipment sectors, which present significant barriers to entry. We believe the company is attractively valued and has a history of returning approximately 80% of free cash flow to shareholders through dividends although these are not guaranteed. Additionally, Volvo's ongoing service growth and moderating electrification spend are expected to lead to truck margin expansion.
Portfolio weight: 1.49%
Description: Walmart is the world’s largest retailer, operating supercentres, discount stores, and e‑commerce marketplaces across the U.S. and internationally, plus Sam’s Club membership warehouses. It sells groceries and general merchandise, supported by a vast supply chain and data‑driven merchandising. Walmart offers omnichannel services like curbside pickup and delivery, third‑party marketplace fulfilment, private brands, and retail media via Walmart Connect. It also expands into health, financial, and digital services to enhance customer value and loyalty.
Holding Rationale: Walmart's effective cost management and ongoing investments in digital transformation have supported margin stability despite a competitive retail environment. Walmart’s ability to adapt to changing consumer preferences, expand its omnichannel offerings, and leverage its scale for supply chain efficiencies has reinforced its market leadership. Its robust cash flow generation and commitment to shareholder returns also make it an appealing play.
Portfolio weight: 1.31%
Description: Disney is a diversified entertainment company. It produces films and TV through studios and operates linear networks and streaming services (Disney+, Hulu, ESPN+). Disney Parks, Experiences and Products include theme parks, resorts, cruise lines, and consumer products/licensing. The company monetizes beloved franchises across content, platforms, and experiences.
Holding Rationale: Disney is expanding its theme parks and cruise lines, with significant investments expected to drive high returns. Disney's direct-to-consumer business is set for substantial growth, driven by the integration of Hulu and ESPN into Disney+, enhancing user experience and reducing churn. The company's robust content slate, including major releases like "Avatar: Fire and Ash" and "Zootopia 2," is expected to boost revenue and engagement across platforms. Additionally, Disney's strategic focus on international markets and technological advancements in streaming further strengthen its growth outlook. Overall, we believe Disney's diversified portfolio and strategic initiatives position it well for long-term growth.
Portfolio weight: 0.81%
Description: Wells Fargo is a U.S. financial services company offering consumer and commercial banking, credit cards, mortgages, auto lending, treasury/cash management, and investment/wealth services. It operates an extensive branch and digital network. Revenues come from net interest income and fees. The bank emphasises balance sheet strength, expense efficiency, and ongoing risk and control improvements.
Holding Rationale: Wells Fargo is poised for significant growth following the removal of its asset cap, which had constrained its ability to expand for over seven years. We believe the bank is showing signs of achieving strong earnings per share growth. The bank's ability to grow loans and deposits, coupled with strategic capital deployment for repurchases and potential mergers & acquisitions positions it well for future success. The company's strong internal controls and compliance practices are a further positive consideration.
Portfolio weight: 0.85%
Description: Yum China Holdings, Inc. operates a portfolio of popular restaurant brands in China, including KFC and Pizza Hut, with a focus on innovative menu offerings and efficient operations to drive growth. The company has been expanding its store count aggressively, aiming to reach 20,000 stores by the end of 2026, and has introduced new formats like KCOFFEE and KPRO to capture a broader market.
Holding Rationale: Yum China includes is executing well amid a challenging consumer environment, experiencing consistent same-store sales growth and delivering attractive shareholder returns. The company has demonstrated its ability to deliver growth, maintain healthy margins, and return significant capital to shareholders, which we believe makes it a steady quality compounder in the portfolio.
Portfolio weight: 0.88%
Description: "Yum! Brands, Inc. operates a global portfolio of fast-food restaurant brands, including KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill, with over 61,000 restaurants in more than 155 countries and territories. The company focuses on delivering innovative, consumer-centric experiences and leveraging digital technology to enhance operational efficiency and customer engagement.
Holding Rationale: Yum! Brands is experiencing strength in key markets, particularly through its leading brands KFC and Taco Bell, which continue to show robust growth and market share gains. The company's strategic focus on digital transformation and operational efficiency through initiatives like Byte by Yum! Could position it well for sustained long-term growth. Additionally, the potential divestiture of Pizza Hut could unlock further value and drive valuation upside for investors.