HL Select UK Income Shares
Portfolio breakdown - find out exactly why we hold the shares listed below.
Full fund holdings
The portfolio shown is correct at 16/04/2026. Holdings may not show in certain circumstances, for example if we are building or reducing a position in a particular stock.
Portfolio weight: 4.44%
Description: Standard Chartered is an international bank focused on Asia, Africa, and the Middle East, offering retail, private, and corporate banking services. It leverages its network to facilitate trade and wealth management in fast-growing markets. The bank is investing in digital platforms to improve efficiency and customer experience.
Holding Rationale: The bank benefits from exposure to emerging markets and investments in digital platforms. While geopolitical and regulatory risks persist, its improving profitability and strong capital position support a positive long-term outlook.
Portfolio weight: 2.41%
Description: Next is a UK-based, multi-channel retailer with strength in apparel for women, men, and children and in homewares.
Holding Rationale: The company has a strong presence both in Retail and Online; it sells both Next and third-party brands; it operates a platform for other apparel businesses; and it has an in-house Finance business which provides credit to customers. It has been growing its international presence.
Portfolio weight: 2.41%
Description: Tesco is the UK’s largest food retailer, operating over 4,000 stores across the UK, Ireland and Central Europe, alongside Booker wholesale and a growing retail‑media business through Tesco Media & Insight (dunnhumby). The group has simplified its structure following the sale of most Tesco Bank operations.
Holding Rationale: Tesco’s mix of convenience stores, large supermarkets and online shopping gives it broad customer reach. In our view, its scale, Clubcard data advantages, strengthened margins and disciplined capital allocation could support steady multi-year compounding.
Portfolio weight: 0.71%
Description: Berkeley Group is a UK housebuilder focused on large, mixed-use, urban regeneration projects, primarily in London and the South East. The company specialises in complex brownfield developments requiring long planning horizons, design expertise, and close cooperation with local authorities.
Holding Rationale: In our view, Berkeley’s focus on high density regeneration sets it apart within the UK housebuilding sector. Its exposure to constrained urban markets has historically supported pricing resilience. Berkeley boasts an impressive land bank, planning and development expertise and disciplined capital allocation through the cycle. The strong, net cash balance sheet provides resilience.
Portfolio weight: 2.82%
Description: SSE is a UK-based energy and infrastructure company operating across electricity transmission and distribution networks, renewable generation, and flexible power assets. The company plays a key role in supporting the UK’s transition to a low-carbon economy through electrification and network upgrades.
Holding Rationale: SSE is undertaking a major investment programme to expand its regulated asset base and strengthen its position as a leader in grid and renewables infrastructure. The company plays a key role in supporting the UK’s transition to a low-carbon economy through electrification and network upgrades.
Portfolio weight: 2.01%
Description: Great Portland Estates is a property company focused on prime office and retail spaces in central London. It develops, refurbishes, and manages high-quality buildings, including flexible workspace offerings. The business emphasises sustainability and design-led projects, aiming to create modern spaces that meet evolving tenant needs.
Holding Rationale: Great Portland is benefitting from strong post covid demand for London office with strong rental growth supporting rises in earnings and development profits which could in turn lead to rises in asset value.
Portfolio weight: 0.75%
Description: Mondi is a global packaging and paper company, producing a range of sustainable packaging solutions and fibre-based products across Europe, Africa and the Americas. Its operations span the full value chain, from forestry and pulp to packaging production.
Holding Rationale: Mondi benefits from demand for paper-based packaging as businesses and consumers shift towards more sustainable materials. Its integrated model, innovation and breadth across a range of end-markets provide resilience, although performance remains linked to economic conditions and input cost movements.
Portfolio weight: 2.37%
Description: GSK PLC operates as a research-based pharmaceutical company. The Company develops, manufactures, and markets vaccines, prescription, and over-the-counter medicines, as well as health-related consumer products. GSK provides products for infections, depression, skin conditions, asthma, heart and circulatory disease, and cancer.
Holding Rationale: GSK’s recent investments in research and development, innovation and commercial execution have led to progress in both pipeline success and launches. Whilst the company faces a challenging transition within its HIV portfolio which may impact growth, strong market positions in cardiovascular and respiratory markets could see tailwinds to earnings and cashflow.
Portfolio weight: 6.07%
Description: Shell is a global energy company with leading positions in liquefied natural gas, deep-water oil and gas, and energy trading. It also operates a large retail network and focuses on high-return projects and shareholder distributions. The company is investing in cleaner energy solutions while maintaining cash generation from core operations.
Holding Rationale: Shell combines strong cash generation with a clear strategy focused on LNG and advantaged oil assets. While commodity prices drive earnings, its scale and disciplined capital approach could make it a solid option for income and long-term returns.
Portfolio weight: 4.99%
Description: HSBC is one of the world’s largest banking groups, with a strong presence in Asia, the UK, and other key markets. It provides services across retail, commercial, and wealth management, supported by a global network.
Holding Rationale: HSBC offers attractive capital returns through dividends and buybacks, underpinned by growth in Asia and wealth management. The bank is investing heavily in digital platforms and sustainability initiatives to strengthen its competitive edge. Its scale and network advantages support long-term profitability.
Portfolio weight: 2.15%
Description: Rosebank Industries is a diversified industrial holding company focused on acquiring industrial assets and improving their operational and financial performance. The first completed transaction was the purchase of ECI, a leader in the manufacture and distribution of wire harnesses and controls for customers in two principal segments: Electrification & Industrial; and Appliances & HVAC.
Holding Rationale: Rosebank's management has built a long track record of buying, improving and selling industrial assets. ECI is expected to benefit from exposure to favourable demand drivers, including increased regulation, the need for automation, and a shift towards electrification. An increase in investment in ECI by Rosebank is aimed at gaining share and improving margins.
Portfolio weight: 0.69%
Description: Lancashire Holdings Ltd is a global provider of specialty insurance products. The Company is focused on short-tail specialty property insurance, with underwriting operations in Bermuda and London. Lancashire's business areas include aviation, energy, marine, and property.
Holding Rationale: Lancashire is a disciplined and flexible insurance underwriter in the London market. The conservativism and focus on their underwriting creates opportunities to outperform through the cycle, taking advantage of hardening pricing could lead to excess returns of capital through special dividends.
Portfolio weight: 0.75%
Description: Barclays is a UK-based universal bank offering retail banking, credit cards, corporate lending and investment banking services. It operates across the UK, US and internationally, serving both individual and institutional clients.
Holding Rationale: Barclays provides diversified income streams across consumer and investment banking activities, which can support earnings across different market conditions. While profitability is influenced by interest rates and market activity, ongoing cost discipline and capital returns remain important components of the investment case.
Portfolio weight: 2.27%
Description: Hiscox is an international insurer serving individuals, small businesses, and large commercial clients. It offers a mix of retail insurance and specialty coverage, supported by strong underwriting and digital capabilities. The company is increasingly focused on technology-driven solutions to improve efficiency and customer experience.
Holding Rationale: Hiscox is focusing on retail insurance, currently offering attractive returns and growth which complements its more cyclical commercial underwriting divisions. Investments in technology could make the business more efficient and improve customer experience. In our view, Hiscox is well-placed to deliver growth alongside attractive returns.
Portfolio weight: 1.41%
Description: Babcock International Group plc is a UK-based defence, nuclear, and complex-asset services company operating across Marine, Nuclear, Land, and Aviation divisions. It provides critical services such as maintaining the Royal Navy’s fleet, building Type 31 frigates, and delivering civil nuclear and defence training.
Holding Rationale: Babcock offers exposure to essential defence and nuclear services with high barriers to entry. We believe its turnaround strategy and portfolio realignment strengthen financial resilience and position it for long-term contract growth.
Portfolio weight: 2.93%
Description: BP is a global integrated energy company operating across oil, gas, LNG, refining, trading and customer-facing energy businesses.
Holding Rationale: BP’s scale and integrated portfolio support resilient cash generation across commodity cycles. Ongoing strategic simplification, cost discipline and leadership changes are intended to improve returns, operational efficiency and financial flexibility. We believe this positions BP as a pragmatic holding with balanced energy exposure across key energy markets and emerging transition businesses.
Portfolio weight: 0.88%
Description: Coats Group is the world’s leading manufacturer of industrial threads and footwear components, serving apparel, footwear, and performance materials markets globally.
Holding Rationale: Coats offers strong market share, cost efficiency, and growth through acquisitions like Ortholite. Its focus on higher-margin segments and sustainable products underpins long-term earnings visibility. Coats combines scale, low-cost production, and sustainability-focused innovation to maintain leadership in niche segments.
Portfolio weight: 8.83%
Description: AstraZeneca is a global biopharmaceutical company with leadership across oncology, cardiovascular, respiratory, and rare disease treatments. Its robust R&D pipeline, extensive collaborations, and portfolio of patent-protected medicines create meaningful long-term advantages.
Holding Rationale: With scale and discipline in commercial execution, AstraZeneca is positioned to benefit from sustained healthcare demand and scientific innovation. AstraZeneca’s leadership in high-growth therapeutic areas—particularly oncology—strengthens its competitive positioning and long-term growth potential. Its portfolio includes a number of patent-protected, market-leading medicines that provide durable revenue visibility while its deep pipeline and commitment to R&D support ongoing innovation. These characteristics reinforce AstraZeneca’s role as a leading global healthcare company with strong structural tailwinds.
Portfolio weight: 0.76%
Description: Inchcape is a global automotive distributor operating in over 30 markets. It partners with manufacturers to manage vehicle distribution, logistics, and aftersales services, with a focus on emerging markets.
Holding Rationale: Inchcape combines its expertise in automotive distribution with strong partnerships with a broad range of car manufacturers and its presence in fast-growing markets to generate growth. We think the shares look appealing given the company’s growth and cash generation profile.
Portfolio weight: 2.65%
Description: Rentokil Initial is a global leader in pest control and hygiene services, operating in over 80 countries. It has built strong local and national networks and expanded significantly through acquisitions, including Terminix in North America.
Holding Rationale: Pest control is a structurally growing industry supported by climate change, urbanisation and higher hygiene standards. The integration of Terminix has proved challenging however Rentokil's scale and brand strength could drive long-term earnings growth.
Portfolio weight: 3.11%
Description: 3i Group is a private equity and infrastructure investor. Its value creation model is closely linked to its active ownership approach and particularly its stake in Action, a leading European discount retailer with powerful scale advantages.
Holding Rationale: 3i’s appeal is anchored by the strong growth and cash generation of Action, which remains a key performance driver. Diversification and disciplined capital allocation support stability across cycles. Together, these factors could offer an attractive long-term investment profile.
Portfolio weight: 3.57%
Description: RELX PLC is a global provider of information-based analytics and decision tools, operating across four primary business segments: Risk; Scientific, Technical & Medical (STM); Legal; and Exhibitions. The company delivers data-driven solutions through digital platforms, such as Elsevier journals, Lexis+ AI legal tools, and analytics for fraud prevention.
Holding Rationale: RELX has established leading market positions through its data and analytics platforms, which may continue to benefit from integration into corporate workflows.
Portfolio weight: 0.84%
Description: Unilever is a global consumer goods company with leading brands in personal care, home care, nutrition, and ice cream.
Holding Rationale: Unilever’s scale and strong brands give it pricing power and resilience. It is simplifying its portfolio and focusing on higher-growth categories while improving efficiency. The planned ice cream demerger and productivity program could boost margins and returns, offering potential for strong defensive and dependable earnings and cashflow growth.
Portfolio weight: 0.84%
Description: Segro is a real estate investment trust focused on industrial and logistics properties across Europe, including urban warehouses and data centres. It combines property ownership with development capabilities and a strong sustainability focus.
Holding Rationale: We believe Segro, as a leading UK logistics player, is well positioned to benefit from e-commerce growth and rising demand for data centres. Its modern portfolio and development pipeline provide potential upside, though property valuations remain sensitive to interest rates.
Portfolio weight: 3.72%
Description: Rolls Royce designs and services engines for civil and military aircraft and provides power systems for energy and defence applications. Its service-led model generates steady cash flows through long-term maintenance agreements. The company is also investing in next-generation technologies, including sustainable aviation and small modular reactors.
Holding Rationale: The company has delivered a major turnaround, improving margins and cash flow while benefiting from rising air travel and defence demand. Future growth opportunities include small modular reactors and next-generation engine technology.
Portfolio weight: 2.47%
Description: Weir is a mining technology company providing equipment and digital solutions for mineral processing and ground engagement. It generates most of its revenue from aftermarket services tied to ore throughput, creating stable cash flows. The company is focused on supporting sustainable mining and energy transition through innovation.
Holding Rationale: We believe Weir is well positioned to benefit from long-term demand for metals critical to energy transition. Its strong service network and growing digital offering support reliable growth, making it an attractive industrial technology play.
Portfolio weight: 2.11%
Description: Howden Joinery is the UK’s leading supplier of kitchens and joinery products. It operates a nationwide depot network and maintains in-house manufacturing and logistics capabilities. The business model emphasises close relationships with small builders and rapid delivery, creating strong customer loyalty.
Holding Rationale: Howden has a strong position in the UK kitchen market thanks to its trade-only model and large depot network. Even in a weak housing market, it continued to grow and take share. Its strong finances and proven resilience make it attractive for the long term in our view.
Portfolio weight: 2.93%
Description: Anglo American is a global diversified miner with strategic exposure to copper, premium iron ore, and crop nutrients—commodities tied to electrification, steel decarbonisation, and agricultural productivity. Operational improvements and portfolio streamlining have enhanced predictability and strengthened margins.
Holding Rationale: Anglo’s core commodities are aligned with long-term themes such as electrification and decarbonisation. Portfolio simplification and capital discipline strengthen its investment case. Its disciplined capital approach and resource quality position it well for structural growth, despite inherent commodity-cycle volatility.
Portfolio weight: 2.48%
Description: Rio Tinto is a global diversified mining business with a portfolio of assets. Iron ore dominates revenue and earnings although it has robust exposure to copper which is a particularly attractive commodity for electrification demand.
Holding Rationale: Rio is a mining business with its main commodity exposure in iron ore and growing exposure to copper. A limited supply of commodities and high levels of demand from infrastructure development and the energy transition could help to drive prices and improved free cash flow generation and dividends.
Portfolio weight: 1.44%
Description: Cranswick is a UK-focused, vertically integrated supplier of fresh and added-value food products, selling predominantly to UK grocery retailers. The business operates across Convenience, Fresh Pork, Poultry and Gourmet products, with its “farm-to-fork” integration spanning farming, genetics and processing to support traceability, quality and security of supply.
Holding Rationale: Cranswick benefits from long-standing UK retail relationships and a product mix that includes premium own-label and value-added ranges, with service levels and innovation highlighted as key differentiators. Ongoing capital investment in capacity, automation and efficiency, alongside targeted bolt-on acquisitions and a progressive dividend, underpin its potential to grow volumes and improve margins over time.
Portfolio weight: 2.46%
Description: Mastercard is a global payments technology company that connects banks, merchants, and consumers across more than 220 countries. It operates a secure, scalable network and has expanded into services like cybersecurity, data analytics, and real-time payments.
Holding Rationale: Mastercard combines a powerful global network with growing services that make payments safer and smarter. It benefits from the ongoing shift to electronic payments and strong cash generation, while its investments in new technologies help keep it ahead of competitors.
Portfolio weight: 2.15%
Description: Oxford Instruments designs and manufactures advanced tools for semiconductors, materials analysis, and life sciences. Its products include scientific imaging systems and plasma processing equipment, serving both research and industrial customers.
Holding Rationale: The company is exposed to fast-growing areas like semiconductor manufacturing, medical research and advanced materials, supported by strong intellectual property and a strong balance sheet. Recent portfolio changes and buybacks could help improve margins and focus on higher-growth markets.
Portfolio weight: 1.11%
Description: Bellway plc is a UK-focused national housebuilder delivering private and affordable homes across England, Scotland, and Wales through a multi-division model. It operates over 200 outlets and maintains a strong land bank and five-star HBF rating.
Holding Rationale: Bellway is a conservatively financed, well managed housebuilder with a strong reputation for quality. The company is currently benefitting from working capital efficiencies, having acquired land well during recent years. Bellway can potentially benefit from improving housing transactions supported by capital releases.
Portfolio weight: 4.06%
Description: British American Tobacco is one of the world’s largest tobacco companies, operating in over 140 markets. It sells traditional combustible products and “New Categories” such as vaping, heated tobacco, and oral nicotine pouches, with strong U.S. exposure and global scale.
Holding Rationale: BAT benefits from powerful brands, pricing strength, and cost discipline. Growth in smokeless alternatives and innovation helps offset secular declines in cigarette volumes, supporting resilient cash flow and shareholder returns.
Portfolio weight: 4.84%
Description: Lloyds is one of the UK’s largest banking groups, operating under brands like Lloyds Bank, Halifax, and Bank of Scotland. It focuses on retail and commercial banking, mortgages, and insurance, with a strong emphasis on digital transformation and efficiency.
Holding Rationale: Lloyds benefits from its scale and trusted brand, which help keep costs low and margins strong. With interest rates supporting profitability and a clear plan for returning cash through dividends and buybacks, the outlook for steady growth and shareholder returns looks attractive.
Portfolio weight: 3.65%
Description: Reckitt is a global consumer goods company focused on health, hygiene, and nutrition, with brands like Dettol, Lysol, and Durex. It is reshaping its portfolio to concentrate on high-growth categories and improve efficiency.
Holding Rationale: Reckitt owns strong brands across health and hygiene categories with a presence across developed and emerging markets globally. Successful execution of the company's ongoing restructuring program should unlock stronger growth and margin improvement.
Portfolio weight: 1.55%
Description: Eaton is a global power management company operating across electrical components, systems and services, aerospace systems and vehicle and emobility solutions. It focuses on electrification, energy efficiency and safety across industrial, utility, commercial and residential end markets.
Holding Rationale: In our view, Eaton’s exposure to data centre developments, electrification, grid modernisation and aerospace could support durable multi-year growth. Its mix of aftermarket and service revenue may help smooth cycles, while ongoing investment in energy efficiency and power solutions offers long-term growth potential.