An HL fund manager’s view – how to find reliable growth

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HL Select Fund manager Steve Clayton shares what he looks out for when searching for reliable growth.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

5 September 2023

We live in uncertain times. Both interest rates and inflation are far higher than seemed likely just a few years ago. Despite this, so far economies have held up better than many expected.

In my career, I’ve seen far more predicted recessions than actual ones. I’ve seen more than a few false dawns too.

What is clear though, recession or no recession, the UK economy has struggled to maintain any sort of momentum for many years now. We can argue all sorts of reasons for why. But when growth seems to be sluggish at the best of times, it’s probably unwise to expect a boom any time soon.

In times like these, dependable growth is more important than ever.

One way I try to find this is to look for businesses with recurring revenues. Those who have customers buying their products and