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HL Select Funds

HL Select Global Growth Shares fund - Time to start investing

HL SELECT GLOBAL GROWTH SHARES

HL Select Global Growth Shares fund - Time to start investing

Managers' thoughts

Important information - The value of this fund can still fall so you could get back less than you invested, especially over the short term. The information shown is not personal advice and the information about individual companies represents our view as managers of the fund. It is not a personal recommendation to invest in a particular company. If you are at all unsure of the suitability of an investment for your circumstances please contact us for personal advice. The HL Select Funds are managed by our sister company HL Fund Managers Ltd.
Steve Clayton

Steve Clayton - Fund Manager

3 May 2019

We’re delighted that so many clients have chosen to invest into the HL Select Global Growth Shares fund.

We’ve been working hard for over a year, creating a paper portfolio of our favourite stocks around the world. Starting today, we’ll be turning those ideas into an actual fund.

Each investment in the fund will be several million pounds in value, so it’ll take a while to build them all up. Investing into the biggest companies is relatively straightforward, but for smaller companies it could take a little time to finish building a position.

That’s why we’ll always show our positions a few days after the event, to allow our dealer Lennie to act, without alerting the wider market before he’s finished. Investing globally adds complexities too. We’ll have to buy currencies to settle the trades, and different markets have their own local quirks.

Much of Europe closes for May Day, which is conveniently just before we launch. But the UK takes a bank holiday all of its own on Monday 6 May, while Japanese markets are closed for their annual Golden Week holidays until just after we launch.

It’s important for us to get the best prices when we invest your money. Where possible we’ll use a technique called Programme Trading. Here Lennie can aggregate many of the orders into a huge trade, likely to be many, many millions in value, and invite brokers to compete on the price at which they will trade on our behalf. This type of trading can lead to very low costs, but is only suited to shares where there are a large number of buyers and sellers at any one time.

Harder to trade stocks will be dealt with one-by-one, with Lennie instructing brokers on the particular strategy to adopt for each stock, with the aim of getting the positions bought at the lowest possible cost. Everything is electronic, in terms of how the money moves around, but the conversations that Lennie has with the brokers can be vital in determining the price we end up dealing at.

We’ll tread carefully, because not only is it your money, it’s ours too. All the global team: Amelia, Charlie, Gareth, Lennie and I have invested into the fund. We’ll be revealing the portfolio soon, most likely on 13 May. If we are still building any of the positions then, we’ll keep those particular names under wraps a while longer.

Thank you for choosing to invest in the HL Select Global Growth Shares fund. We’re looking forward to keeping you in touch with how your investment is faring. You’ll be able to read our regular blogs and once the fund’s holdings are revealed, you’ll be able to see where your money is invested each and every day.

Important - This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. Non-independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place (including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing. Please see our full non-independent research for more information. Unless otherwise stated performance figures are from Bloomberg and estimates, including prospective yields, are a consensus of analyst forecasts from Bloomberg. They are not a reliable indicator of future performance. Yields are variable and not guaranteed.