Marlborough High Yield Fixed Interest A Inc

•  Large and experienced team conduct their own fundamental research
•  Identify strongest risk-adjusted opportunities across industries, sectors and geographies
•  Robust risk management underpins all stages of the investment process

The Marlborough High Yield Fixed Interest Fund invests in sterling-denominated high yield bonds issued by companies in the UK and overseas.

Co-managers Ben Pakenham and Adam Tabor work with a large and highly experienced investment team, with the resources to conduct their own intensive fundamental research, rather than relying on analysis from outside agencies.

Robust valuation framework

They identify the most attractive risk-adjusted total return opportunities across different industries, sectors and geographies, using a consistent and robust valuation framework.

Their research covers the macro backdrop and analysis of the bond-issuing company and the wider industry in which it operates. The team will also study the precise terms of the bond’s covenant and a range of other factors before making an investment decision.

Once existing holdings in the fund are judged to be fully valued they will be replaced with new undervalued ideas.

Risk management

At the heart of the investment team’s approach is the identification, measurement and management of risk, which underpins all stages of the investment process.

Risk Warning: The value of investments and the income from them may fall as well as rise and you may not get back the amount you originally invested. Investments in fixed interest securities are subject to market and credit risk and will be impacted by interest rates. Investments in higher yielding bonds issued by borrowers with lower credit ratings may result in a higher risk of default and have a negative impact on income and capital value. The Fund may use derivatives to protect the value of the Fund's assets or to reduce the costs of investing, although this may not be achieved. It is not anticipated that the use of derivatives will have any significant effect on the risk profile of the Fund. To ensure that the principal objective of providing a high level of income can be met, 50% of the annual Manager's charge is deducted from capital rather than income. Future capital growth may be constrained as a result.