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HL Select UK Growth Shares Inc (GBP)

Sell:151.13p Buy:151.13p Change: 0.67p (0.44%)
Prices as at 20 November 2024
Sell:151.13p
Buy:151.13p
Change: 0.67p (0.44%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 20 November 2024
Sell:151.13p
Buy:151.13p
Change: 0.67p (0.44%)
Prices as at 20 November 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

A portfolio of exceptional UK shares, chosen and managed by our experts in the convenience of a single fund, with a new level of transparency and insight.

Whilst traditional funds appeal to many investors, most lack the transparency and depth of information to fully satisfy these clients. Traditional discretionary managed share portfolios, for investors who wish to receive additional advice, may offer greater transparency and information, but are generally expensive and often have high minimum investment requirements.

With this fund we aim to provide a new type of investor experience. Offering access to an expertly managed portfolio of shares, in the convenience of a fund, with a new level of investor information and insight. All for less than the cost of the average fund.

Our view on the sector

The UK stock market is home to lots of world-class companies. From international giants to a diverse array of smaller businesses. This provides a rich hunting ground for fund managers in this sector. They all try to grow investors' money over the long term, but each goes about it in a different way. Some focus on larger companies in the FTSE 100 index, others invest in medium-sized or smaller companies, and some have the flexibility to invest in any company, regardless of size. Some aim to match or deliver a return similar to the broader UK stock market. Others have the freedom to try and make as much money as possible for investors and take more risks. That could mean investing in only a small number of companies, for instance. A fund that invests in UK shares is normally the first port of call for UK-based investors. But with such a variety on offer, investors should make sure a fund is right for their circumstances before investing.

Performance Analysis

This fund is a relatively new addition to Hargreaves Lansdown's fund range. It will aim to outperform its peers in the IA UK All Companies Sector and the FTSE All Share Index over the long term.

The fund aims to offer investors long-term growth. To achieve this, investments are made in financially strong, quality businesses, that themselves offer excellent long-term growth potential.

Over the short term, markets can be unpredictable. But the long term is often surprisingly clear. Trends like ageing populations or the growth of e-commerce play out over long periods of time. The managers try to find businesses on the right side of these trends and hold them for years.

Investment Philosophy

Businesses with exceptional products and services can create a virtuous circle of customer loyalty, pricing power and financial strength that allows them to prosper and grow whichever way the economic winds are blowing.

The characteristics the managers look for can become self-reinforcing, giving companies the power to reinvest back into the business, stay at the forefront of their industries and continue to grow year after year. That can make a big difference to their value over the long term.

Process and Portfolio Construction

The potential for long-term durable growth is the main objective. The companies the managers invest in will share a number of characteristics, but not every investment will tick each box.

1. Exceptional products and services: businesses with an edge over their rivals - perhaps a brand, or intellectual property - that customers can't find elsewhere.

2. Recurring revenue: when customers keep coming back, it's easier to generate good returns.

3. High margins: the managers believe high profit margins indicate the strength of the company's offering. High margins are not earned by accident.

4. Healthy returns: a high return on capital allows a business to fund its own growth.

5. Cash generation: businesses have to keep reinvesting to stay in contention. Strong cash flow gives the freedom to do this, without sacrificing financial strength.

6. Little or no debt: the managers prefer businesses to be strong enough to sail through choppy waters, even when it looks like a mill pond out there. Too much debt can leave a company exposed in a downturn, whereas the financially strong can take advantage of opportunities in the upturn.

Companies are chosen on merit, not mass. The managers expect to hold around 30 large, medium and higher-risk smaller companies. This means each can make a real difference to performance, although it is a higher risk approach and like all funds it can fall as well as rise in value.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

21/11/19 to 21/11/20 21/11/20 to 21/11/21 21/11/21 to 21/11/22 21/11/22 to 21/11/23 21/11/23 to 21/11/24
Annual return 5.84% 13.83% -8.67% 3.96% 9.65%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Steve Clayton
Manager start date: 1 December 2016
Manager located in: Bristol

Steve started working in the City in 1987, after gaining an economics degree from the University of Cambridge, and has worked in the stock market ever since. Early experience at Royal Life, NPI and Halifax eventually led to a Partnership at Mirabaud Securities LLP. That move saw Steve switch from running institutional portfolios to providing leading fund managers in the UK, Switzerland and North America with advice on stock selection and strategy. Steve joined Hargreaves Lansdown in 2014 to provide equity research to our clients and create the HL Select fund range.

manager photo
Manager Name: James Jamieson
Manager start date: 27 September 2022
Manager located in: Bristol

James joined HL in 2022 to manage the Select UK funds and his focus on finding high quality companies makes him a great fit for the strategy. He brings a wealth of experience investing in both UK and European equity markets, beginning his career in 2008 at Smith and Williamson before moving on to Royal Bank of Canada's Asset Management business. James has a first class honours degree in Applied Business from Imperial College London and is a CFA Charterholder.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now