HL SELECT UK GROWTH SHARES
HL SELECT UK INCOME SHARES

NEW - HL select Global Growth Shares

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 - Fund Manager

6 April 2019

Companies in charge of their own destiny. That’s the overriding philosophy of our HL Select Funds.

We’re looking for businesses that can benefit from a virtuous circle of growth. Firms with fantastic products or services which are hard for competitors to copy generally have high profit margins and strong cash flows.

This allows forward-thinking CEOs to keep debt low, ride out occasional economic or political storms, re-invest back into their business and keep growing year after year.

If a business can keep growing reliably, compounding over a long time, it can increase its value many times over. Our strategy is to find these companies and hold on to them.

Our first fund, HL Select UK Growth Shares, was set up to find the best of these businesses in the UK. Now it’s time to take our approach abroad and hunt down the best growth companies we can find from around the world, in the new HL Select Global Growth Shares fund.

We think the fund is a great way to diversify. It could sit well as part of a portfolio that’s mostly invested in the UK. Equally, as fund managers all invest differently, you could use it to complement a portfolio which already invests in global funds.

Reasons to go global

Investing globally opens up new opportunities to find truly exceptional companies from a much bigger pool of choice.

Industries often gravitate toward centres of excellence. For example Silicon Valley is home to the world’s leading technology companies. And lots of the world’s most valuable luxury brands are in Europe.

The HL Select Global Growth Shares Fund will invest across all the world’s major stock markets, including higher-risk emerging markets, to find the companies we think have the best long-term growth potential.

How we’ll invest

The world’s being redrawn in many ways, and technology is at the forefront. While we like some out-and-out technology businesses, we often think the most compelling investments are in other industries, where companies are using new technology to lead change.

Retailing isn’t a new industry, but online platforms upended the cart by spotting that retailers didn’t actually need shops. Some of those platforms have done amazingly well. Others have used the online channels to their own advantage.

In almost every sector we can find businesses that are strengthening their positions by using technology to serve their customers better.

Not all our holdings will be technology stories. We’re big believers in the value of consumer brands, and we’ll be backing some businesses where we can see long-term staying power and growth potential in their brand portfolios. We might also invest in higher-risk smaller companies where we see excellent growth potential.

Other companies we invest in will simply be unique businesses that command their own industries, through the sheer strength of their capabilities.

Every stock counts

The fund will typically hold 30 to 40 companies.

We want each investment to lift the fund when things go well, as we aim for higher returns. It works both ways, so it’s a higher-risk approach. The fund will fall as well as rise in value, so you could get back less than you invest.

We want to own companies for as long as we think they can keep growing. Buying and selling is easily done, but the costs eat into returns. We’d much rather buy the right businesses and share in their growth year after year.

The HL Select difference

Like all HL Select funds, we’ll keep you up to date. As we build the portfolio we’ll let investors know exactly which companies we’ve bought, and why.

More about HL Select Global Growth Shares including charges

HL Select Global Shares Key Investor Information

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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

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