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HL Select UK Income Shares Accumulation (GBP)

Sell:116.24p Buy:116.24p Change: 0.55p (0.48%)
Prices as at 15 October 2021
Change: 0.55p (0.48%)
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
Prices as at 15 October 2021
Change: 0.55p (0.48%)
Prices as at 15 October 2021
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

A portfolio of high-quality, dividend-paying UK shares, chosen and managed by our experts in the convenience of a single fund. The fund aims to offer an attractive and growing level of income with long-term capital growth potential.

Whilst traditional funds appeal to many investors, most lack the transparency and depth of information to fully satisfy these clients. Traditional discretionary managed share portfolios, for investors who wish to receive additional advice, may offer greater transparency and information, but are generally expensive and often have high minimum investment requirements.

With this fund we aim to provide a new type of investor experience. Offering access to an expertly managed portfolio of shares, in the convenience of a fund, with a new level of investor information and insight. All for less than the cost of the average fund.

Our view on the sector

Equity income funds are popular with investors. Most aim to generate a rising income, and increase the value of your original investment, over the long term. The income can be paid out, or reinvested in the fund to boost long-term growth. Different fund managers take different approaches to income investing. Some focus on larger companies that are seen to be more stable and have paid regular dividends for many years. Others invest in higher-risk small and medium-sized companies. These might pay a lower income to start with, but have more growth potential. We think carefully chosen equity income funds can form the cornerstone of almost any portfolio.

Performance Analysis

This fund is a relatively new addition to Hargreaves Lansdown's fund range. It aims to outperform its peers in the IA UK Equity Income Sector and the FTSE All Share Index over the long term.

The fund aims to offer investors long-term income and capital growth. To achieve this, investments are made in financially-strong, quality businesses that themselves offer excellent long-term dividend and growth potential.

Investment Philosophy

Income investing isn't just about the next dividend. It's about creating the combination of rising income, backed by capital gains that maximises wealth over the long term. A very high yield today can mean a lower total return in the long run, because the company isn't reinvesting enough in future growth.

The fund aims to provide investors with an attractive level of income today, with the potential for long-term dividend growth. Companies that grow their dividends usually see their shares appreciate over the long-term too. A rising income can therefore translate into long-term capital growth.

Process and Portfolio Construction

The managers seek businesses they believe can reliably pay increasing dividends years out into the future. The companies they invest in share a number of characteristics, but not every investment will tick each box.

1. A sustainable starting yield: a company must have the free cash flow to support its current dividend, as well as investing back into the business for future growth.

2. Debts firmly under control: stocks that can shrug off economic storms and carry on rewarding shareholders without taking on additional debt are favoured.

3. Strong returns, backed by cash flow: high margins and high returns on capital that tend to be backed up by strong cash flows are preferred.

4. Recurring revenues: customers that come back again and again make it easier to pay a consistent dividend, so the managers value businesses with recurring revenues highly.

Strong track record: a history of paying dividends, and especially rising ones, can be a good sign of a shareholder-friendly attitude in the boardroom, although this is not an indicator of future returns.

The fund invests in a mixture of higher-yielding companies, whose dividends will form the bedrock of the overall income, and some exciting, lower-yielding stocks the managers believe have outstanding earnings and dividend growth prospects. They invest in around 30 large, medium-sized and higher-risk smaller companies. This means each can make a real difference to performance, although it is a higher-risk approach.

All investments and income can fall as well as rise in value so investors could get back less than they invest. Charges are taken from capital, which can increase the yield but reduces the potential for capital growth. Please note the fund is managed by our sister company Hargreaves Lansdown Fund Managers.

question mark Manager Track Record Based on HL Quantitative Research

  • HL Select UK Income Shares A Acc
  • IA UK Equity Income

Fund Track Record

15/10/16 to 15/10/17 15/10/17 to 15/10/18 15/10/18 to 15/10/19 15/10/19 to 15/10/20 15/10/20 to 15/10/21
Annual return n/a -6.25% 9.64% -10.59% 26.72%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Charlie Huggins (CFA)
Manager start date: 2 March 2017
Manager located in: Bristol

After gaining a First in Biochemistry at the University of Oxford, Charlie joined Hargreaves Lansdown in 2011. Working within the Investment Research team, Charlie has focused on equity research and investment management, gaining his CFA charter along the way. Since Steve Clayton joined HL in 2014, Charlie has worked with Steve to develop HL's equity fund management capabilities.

manager photo
Manager Name: Steve Clayton
Manager start date: 2 March 2017
Manager located in: Bristol

Steve started working in the City in 1987, after gaining an economics degree from the University of Cambridge, and has worked in the stock market ever since. Early experience at Royal Life, NPI and Halifax eventually led to a Partnership at Mirabaud Securities LLP. That move saw Steve switch from running institutional portfolios to providing leading fund managers in the UK, Switzerland and North America with advice on stock selection and strategy. Steve joined Hargreaves Lansdown in 2014 to provide equity research to our clients and create the HL Select fund range.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through an ISA, Lifetime ISA, SIPP or Fund & Share Account