Wealth Shortlist Update: Marlborough Multi Cap Income
Important notes
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.
16 December 2022 | 3m read
We’ve taken the decision to remove the Marlborough Multi Cap Income fund from the Wealth Shortlist.
Siddarth Chand Lall, the fund’s manager, is an experienced investor, but our conviction in the fund has been tested. While the fund got off to a strong start after its launch in July 2011, it has failed to deliver better returns than the UK stock market, represented by the FTSE All Share index, in recent years. Our analysis suggests that, for several years, the manager has not consistently added value through stock selection. This is a key factor we analyse when assessing a fund manager, and represents their ability to pick strong performing companies regardless of what size or sector they’re in.
In particular the fund has had a challenging year, and has lagged the FTSE All Share index by 22.55%* over the last 12 months. This isn’t unique to this fund – many others with a focus on UK small and medium-sized companies have struggled, in an environment where large companies have outperformed. However, the fund has done worse than most other UK Equity Income funds investing in a similar part of the market.
We also no longer believe there’s as much collaboration and interaction with other smaller companies investors at Marlborough as we would like to see. The fund was set up to harness the capabilities of the group’s broader expertise in smaller businesses, but we don’t feel this is being used to its full extent.
This, alongside weaker performance and stock picking, has reduced our conviction. As a result, we have decided to remove the fund from the Wealth Shortlist. We will continue to monitor performance and let investors know if our views change.
This isn't a recommendation to make any changes to a portfolio. Investors should make sure any investments match their investment goals and attitude to risk and are held as part of a diversified portfolio. If you're not sure if an investment is suitable for your circumstances, please seek advice.
Annual percentage growth
| Nov 17 – Nov 18 | Nov 18 – Nov 19 | Nov 19 – Nov 20 | Nov 20 – Nov 21 | Nov 21 – Nov 22 | |
|---|---|---|---|---|---|
| Marlborough Multi Cap Income | -6.47% | 13.97% | -10.60% | 19.97% | -16.01% |
| FTSE All Share | -1.46% | 11.01% | -10.29% | 17.40% | 6.54% |
| IA UK Equity Income | -4.16% | 10.30% | -10.54% | 17.10% | 3.37% |
Past performance is not a guide to the future. Source: *Lipper IM to 30/11/2022.
Important notes
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.
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