Our Investment Strategy

Steve Clayton, Head of Equity Funds, speaks to an off-screen interviewer.

Steve: The three things which really define the HL Select fund range is the transparency of how we manage your money, our focus on the quality of the shares that we chose to hold for the long-term, and our insistence on financial strength, because we believe that companies can’t win long-term unless they start from a robust place.

Amelia Nunn, Equity Analyst, speaks.

Amelia: Short-term performance can be impacted by external factors, for example, currency or politics. But we believe that if we invest in these quality companies that are in charge of their own destiny, then over the long-term, the value of the companies will grow.

The video cuts to Gareth Campbell, Equity Analyst.

Gareth: The market has always been very volatile. And trying to time that perfectly has never been a successful strategy for most fund managers. But we think just trying to find good, high quality companies, that will have their intrinsic value grow over time as their operating profit grows, is the right approach to investing.

Charlie Huggins, Fund Manager, talks on camera.

Charlie H: We want to invest in the best businesses we can. That we think are going to grow profits year after year, for many years. Because if you can get that compound growth in profit, then the share price will invariably follow over a period of time. So, if we can find those businesses that we think will be earning much higher profits in ten years’ time, we think that gives us the best chance of growing our investors’ money.

Charlie Bonham, Equity Analyst, is on-screen.

Charlie B: We think our clients deserve to know where we’re investing their money, on their behalf.

The footage continues to cut between people that have already spoken.

Charlie H: All of our holdings online are available to view. We do blogs, once or twice a month at least, that explain exactly what we’re doing with your money. So, it’s a very transparent approach, because we want our investors to know what we’re doing at all times.

Steve: We send out regular blogs where we talk about performance or explain why we’ve been changing any of our positions. Not that we change things that often. We’re really focussed on long-term investing and we expect to hold our shares for years at a time. This keeps the costs within the fund down low and helps boost your returns.

Charlie H: All of us on the Select team believe very firmly in this approach and we all invest personally in the Select funds. And we think that this helps to align our interests with those of our investors.

Disclaimer: This video is not personal advice or a recommendation to invest. If you are unsure whether an investment is right for you, please seek advice. The value of investments can fall as well as rise, so you could get back less than you invest. Past performance is not a guide to the future. The HL Select fund range is managed by our sister company, HL Fund Managers Ltd.

March 2019