Marlborough’s mission is to lead the way in active management as a trusted firm with superior fund knowledge, service quality, product understanding and added value for investors.
Why choose active management?
The emphasis for all active managers should be on providing added value for investors through benefits such as superior returns, enhanced income, risk management and diversification, together with competitive pricing.
Our award-winning managers do not make their investment decisions simply on the basis of a set of well-worn stock market metrics and nor do they seek the illusory protection of following the herd and holding a portfolio similar to many of their peers.
They could never be accused of being ‘index huggers’ – those whose portfolios closely mirror the FTSE 100, for example, or a particular bond market index, and who take comfort from the fact that their performance will never be markedly different from it.
Instead all of our managers make their own judgements and will invest only in the companies that satisfy their demanding criteria. They conduct their own research and devote the time needed to really understand a company and those running it.
Only when they have that crucial understanding of a company, and they believe in its story, will our managers invest – and when they do it is with a long-term view. Our managers invest in companies, rather than trading for short-term gains.
They will sift through hundreds of opportunities to find those that are most attractive.
They appreciate too that successful active management is not just about choosing the companies to invest in. It is also about choosing which ones to avoid. Their detailed analysis plays a key role in identifying risk, which helps to manage volatility.
No-one has a crystal ball to predict how a fund will perform, that is not the nature of investment. However, while it is true that past performance may not be repeated, we believe that long-term track record should certainly be considered when investors are selecting a manager.
Of course, passive investments have a role to play, but active funds offer something different – and we believe that the expertise and experience of a skilled fund manager can bring significant long-term benefits for investors.
In essence, whether the manager invests in young, dynamic UK companies; a multi-cap portfolio of overseas equities; or a globally diversified portfolio of bonds; appropriate exposure to actively managed funds can be an important element in a balanced portfolio.