HL Select UK Growth 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: 2.92%
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: 1.11%
Description: Trainline is a leading digital platform for rail travel in the UK and Europe, offering booking and journey management through its website and app. It aggregates routes and fares from multiple operators to simplify travel. The company is a key player in the shift toward digital ticketing and sustainable transport.
Holding Rationale: Trainline is a beneficiary of rail digitalisation and European deregulation, which increase demand for aggregators. While regulatory uncertainty and competition pose risks, its strong brand and technology platform provide resilience.
Portfolio weight: 3.02%
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: 2.85%
Description: Halma is a group of businesses specialising in safety, environmental, and healthcare technologies. Its subsidiaries operate globally in regulated markets, providing products and services that address critical needs. The company’s decentralised structure fosters innovation and agility, while acquisitions expand its reach into niche markets.
Holding Rationale: Halma combines steady organic growth with bolt-on acquisitions, supported by strong margins and cash generation. We believe its diversified portfolio and exposure to structural trends make it a reliable long-term compounder.
Portfolio weight: 2.16%
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: 0.45%
Description: Diageo is a global beverage alcohol leader with over 200 brands, including Johnnie Walker, Guinness, and Smirnoff, and strong positions in spirits and beer across nearly 180 countries. It combines premiumization strategy with global scale and iconic brand equity.
Holding Rationale: Despite recent leadership changes and cyclical softness, Diageo’s diversified portfolio and premium positioning may provide durable advantages. Cost savings and strategic clarity could restore growth and valuation over the medium term.
Portfolio weight: 4.17%
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: 4.40%
Description: Compass Group is a global leader in food and support services, operating in over 25 countries with a workforce of over 550,000. It serves diverse sectors including healthcare, education, sports, and business, leveraging scale and brand strength for competitive advantage.
Holding Rationale: Compass benefits from structural outsourcing trends and high client retention through long-term contracts. Operational efficiencies and disciplined capital allocation support steady growth and defensive characteristics across cycles.
Portfolio weight: 5.22%
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: 1.48%
Description: Shaftesbury Capital owns and manages a large portfolio of mixed-use properties in London’s West End, including retail, leisure, office, and residential spaces. It focuses on creating vibrant destinations that attract tenants and visitors. Its strategy emphasises long-term value creation through asset management and redevelopment.
Holding Rationale: The company’s prime locations and asset management expertise support rental growth and long-term value. While sentiment toward UK property can affect valuations, we believe Shaftesbury’s proven ability to reposition estates makes it a resilient choice.
Portfolio weight: 1.60%
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: 1.45%
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: 1.18%
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: 1.83%
Description: Diploma is a distributor of specialised technical products and services across three sectors: Controls, Seals, and Life Sciences. It earns revenue by supplying mission-critical components and consumables to Original Equipment Manufacturers (OEMs) and end-users. Examples include industrial control cables for automation systems (Controls), high-performance seals used in aerospace and energy applications (Seals), and laboratory consumables for diagnostic testing (Life Sciences).
Holding Rationale: Diploma has delivered growth through a value-added distribution model, supplying mission-critical components and consumables to Original Equipment Manufacturers (OEMs) and end-users in niche markets. We believe its competitive advantages include strong brand reputation, specialised expertise, and a decentralised culture. High margins and structural opportunities in industrial automation, aerospace, and life sciences support its long-term compounding potential.
Portfolio weight: 2.99%
Description: BAE Systems plc is a multinational defence, aerospace, and security company headquartered in London. It designs and supports advanced military systems including combat aircraft, naval vessels, submarines, and cybersecurity solutions, serving primarily the UK, US, and allied nations.
Holding Rationale: BAE benefits from rising global defence budgets and long-term sovereign contracts. Its scale, technological expertise, and strong backlog provide earnings visibility and structural growth potential.
Portfolio weight: 1.07%
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: 9.54%
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: 5.70%
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: 1.04%
Description: Pearson is a global education company with leading positions in assessments, English-language learning, and virtual schools. It is investing in AI-driven tools to make learning more personalised and secure, while streamlining its operations.
Holding Rationale: Pearson’s strong position in testing and credentials provides steady revenue, and its push into AI-enabled learning offers growth potential. While policy changes can affect demand, its scale and trusted brands make it well placed to benefit from long-term trends in education.
Portfolio weight: 2.47%
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: 5.03%
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: 1.40%
Description: Auto Trader is the dominant UK digital automotive marketplace, leveraging powerful network effects, high-margin operations, and rich data capabilities. It continues to expand its platform integration, including digital retailing solutions and enhanced monetisation tools.
Holding Rationale: Auto Trader’s strong network effects and data capabilities underpin pricing power and user loyalty. Its asset-light model supports robust cash generation and capital returns, while structural shifts toward online automotive transactions reinforce its growth trajectory. Together, we believe these factors support a resilient and highly scalable digital platform.
Portfolio weight: 9.10%
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: 0.93%
Description: Rightmove is the UK’s leading online property portal, connecting homebuyers, sellers, and estate agents through a subscription-based platform. It dominates the market with unmatched traffic and data-driven tools for agents. Its strong brand and technology investments make it a key player in the UK housing market.
Holding Rationale: Rightmove benefits from strong network effects and high barriers to switching, which we believe makes its position very secure. Continued investment in technology and new services would likely continue to support growth, even if housing market conditions fluctuate.
Portfolio weight: 1.36%
Description: Experian is a global information services company and consumer credit bureau, operating in B2B data, analytics, decisioning software, and consumer services.
Holding Rationale: Experian’s entrenched data assets, scalable software, and consumer network underpin structural growth in fraud prevention and analytics. We believe strong cash conversion and disciplined M&A support durable earnings per share (EPS) compounding over time. Its proprietary datasets and cloud-native platforms create high barriers to entry and strong growth visibility.
Portfolio weight: 1.96%
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: 2.22%
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: 5.47%
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: 3.76%
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: 1.44%
Description: Serco provides outsourced services to governments worldwide, covering defence, justice, immigration, transport, and healthcare. It manages complex contracts and has expanded into US defence through acquisitions. The company plays a critical role in delivering essential public services across multiple regions.
Holding Rationale: Serco has a strong position as a trusted partner to governments, delivering essential services in areas like defence, transport, and healthcare. Its scale and expertise create opportunities to win new contracts and expand internationally. While political and contract risks exist, Serco’s long-term relationships and focus on efficiency provide a solid foundation for growth.
Portfolio weight: 1.45%
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: 4.67%
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: 3.12%
Description: Smith & Nephew is a medical technology company specialising in wound care, sports medicine, and orthopaedic implants. It leverages advanced technologies like robotics and bioactive materials to support surgical and clinical outcomes. The company serves hospitals and clinics worldwide, addressing growing healthcare needs.
Holding Rationale: The company is working through a turnaround, aiming to improve growth and margins, particularly in orthopaedics. We believe its strong positions in sports medicine and wound care provide a solid foundation, but execution remains key.