Exceptional growth potential investment process

For Professional Clients only. Not for distribution to or to be relied upon by Retail Clients

The Marlborough UK Multi-Cap Growth Fund has the freedom to invest in UK-listed companies of all sizes, which means it has a potential investment universe of more than 2,000 stocks.

However, Manager Richard Hallett holds a conviction portfolio of only 45-60 companies.

In selecting stocks for the portfolio, Richard and his team employ a rigorous investment process – and when they invest it is with the intention of holding for the long term. Not all companies will succeed however, and past performance should not be used as a guide to future returns.

The process is based on the concept of Exceptional Growth Potential and employs the team’s stock-picking skills to maximum effect as they seek to identify companies that meet three important criteria.

What gives a company Exceptional Growth Potential?

Macro-agnostic approach

While Richard and the team closely monitor the macroeconomic backdrop, one of the key features of their strategy is that they avoid making investment decisions based on macroeconomic forecasts, because they are so difficult to get right on a consistent basis.

Instead they adopt a macro-agnostic approach and hold a portfolio of companies they believe can continue to grow their earnings without relying on supportive macroeconomic tailwinds. Businesses that meet the demanding criteria for inclusion in the portfolio have Exceptional Growth Potential.

Tactical allocation of up to 10%

Alongside the Exceptional Growth Potential process, Richard and the team have the flexibility to allocate up to 10% of the fund to non-core investment themes to take advantage of shorter-term cyclical opportunities.

Risk Warnings
Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds. Our funds invest for the long-term and may not be appropriate for investors who plan to take money out within five years. Tax treatment depends on individual circumstances and may change in the future. The Fund invests mainly in the UK. Therefore it may be more vulnerable to market sentiment in that country. A more detailed description of the risks that apply to this Fund can be found in the prospectus.

Regulatory Information
This material is for distribution to professional clients only and should not be distributed to or relied upon by any other persons. It’s provided for general information purposes only and is not personal advice to anyone to invest in any fund or product. The Key Investor Information Documents and the Prospectuses for all funds are available, in English, free of charge and can be obtained directly using the contact details in this document. They can also be downloaded from marlboroughfunds.com. An investor must always read these before investing. Information taken from trade and other sources is believed to be reliable, although we don’t represent this as accurate or complete and it shouldn’t be relied upon as such. Calls may be recorded for training and monitoring purposes. Issued by Marlborough Fund Managers Ltd, authorised and regulated by the Financial Conduct Authority (reference number 141660). Registered office: Marlborough House, 59 Chorley New Road, Bolton, BL1 4QP. Registered in England No. 02061177.

Download PDF