HL SELECT GLOBAL GROWTH SHARES

Why invest now?

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

Whilst world stock markets have risen over the long term, there have been peaks, crashes and crises along the way. That’s why we always say investing should be for the long term. The key is to be invested in the first place.

The HL Select team don’t try to time the market, because it’s often driven by sentiment and psychology in the short term. Our focus is on finding exceptional companies and owning them for the long haul.

Global diversification

Brexit is a major concern for investors, but for us it’s really just a distraction. Spreading our investments around world stock markets means that no single economy is likely to upset the apple cart too badly. Also, many of the companies we’ll choose, operate across lots of different countries, providing further diversification.

Change equals opportunity

The world is changing. Technology is transforming industries, consumer preferences are rapidly shifting, populations are aging and the climate is changing.

We believe that the companies best placed to grow amidst all the change need very specific characteristics. Exceptional products or services, which are hard to copy, are a must. But, for long term growth, we believe they need to be backed up by high profit margins, strong cash flow and low debt.

This allows forward thinking management to re-invest back into their business, maintain their competitive position and continue to grow.

We can invest without compromise, choosing from 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.

Focused on quality

It won’t always be plain sailing of course, but when times get tough, the strongest gain ground on their weaker rivals. We believe our focus on high quality companies should provide a degree of shelter at such moments and, when the upturns come, their financial strength can create opportunities to leapfrog over the weak.

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.

The HL Select difference

As soon as the fund launches, investors will be kept up to date. As we build the portfolio, we’ll let investors know exactly which companies we’ve bought, and why.

They’ll also hear from us at least once a month. We’ll tell them what’s going well, and won’t shy away from things that aren’t.

And there will be a full portfolio breakdown online, showing every significant holding not just the top 10.

The philosophy is simple – it’s your money, you deserve to know how it’s working for you.

More about HL Select Global Growth Shares including charges

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

Non-Independent Research Disclosure

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. No view is given as to the present or future value or price of any investment, and investors should form their own view in relation to any proposed investment.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.

The research material provided on our website is not an offer to buy or sell any of the stocks mentioned. Hargreaves Lansdown accepts no responsibility for any use made of these comments and for any consequences that may result. We cannot guarantee the accuracy or completeness of the information provided and consideration has not been given to the personal circumstances of any investor. Therefore any person acting on it does so entirely at their own risk and must assess the suitability of any investment for their own personal circumstances and individual investment objectives. It is not a personal recommendation.

Although we are not specifically constrained from dealing ahead of any research material we do not seek to take advantage of it before it is provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients (including restrictions on dealing for writers of equity commentary).

Hargreaves Lansdown Fund Managers Ltd (HLFM) manages funds that may hold investments which are the subject of commentary prepared and published by other parts of the Hargreaves Lansdown group. Accordingly, appropriate organisational and administrative controls (including physical and information barriers, known as “Chinese Walls”) are in place between different parts of our business, including our marketing and fund management functions, in order to manage these potential conflicts of interest. For more information please see our Conflicts of Interest policy. HLFM currently manages three funds which hold individual equity securities. Details of the significant shareholdings held by these funds can be found here for the HL Select UK Growth Shares fund, here for the HL Select UK Income Shares fund and here for the HL Select Global Growth Shares fund. Hargreaves Lansdown (Nominees) Limited holds individual securities as nominee on behalf of underlying clients of Hargreaves Lansdown, and does not exercise control over or hold the beneficial ownership of these securities.

We do not intend to provide recommendations to buy, sell or hold particular investments, nor do we provide price targets. Our opinions on particular investments (and the facts underlying them) are valid as at the date of publication, but can change at any time, and we may not update our views on any particular investment on a regular basis. Accordingly such opinions and facts may become outdated or obsolete after the date of publication.

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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.