The Marlborough Multi Cap Income Fund invests across the market cap spectrum in companies paying quality, sustainable dividends.
While Manager Siddarth Chand Lall does hold FTSE 100 stocks, he has a bias to faster-growing small and midcap dividend-paying companies listed on the FTSE 250, AIM, FTSE SmallCap and FTSE Fledgling indices.
This multi-cap approach means Siddarth has approximately 700 dividend-paying companies to select from – a far larger investable universe than the one available to the many UK equity income funds focused primarily on the FTSE 100. Not all companies will succeed however, and past performance should not be used as a guide to future returns.
To help manage risk he holds a diversified portfolio of around 140 stocks, with even the largest positions rarely representing more than 2.5% of the fund.
Siddarth looks for companies with strong and sustainable growth prospects, with a dividend yield of at least 2%, and where profits comfortably cover the dividend being paid.
Once added to the portfolio, stocks are continuously reassessed to ensure they deserve their place. Siddarth and the team have a robust sell discipline and are vigilant for threats that could compromise the dividend or capital value. Simultaneously, they are constantly on the lookout for new opportunities for the portfolio.
The power of growing distributions
As the chart illustrates, the fund has been able to increase its pence per share distribution each year since launch in 2011.
Those who invested at launch and have elected to reinvest, and therefore compound their distributions, have received a 9.5% yield on their original investment in 2018.
Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds. 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. 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.
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 www.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.