Fact sheet: Marlborough Global Bond

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
GLOBAL BONDS
Sector
UT Global Bonds
Fund type
Unit Trust
Primary aim
INCOME
Why Money Observer Rates Marlborough Global Bond

Rated Fund 2013-2017. Flexibility and diversification are keys to success

This fund had a record-breaking run as a Money Observer Global Bond Fund award-winner for four consecutive years from 2012 until 2015. It has been managed by Geoff Hitchin for over 29 years, with Nicholas Cooling as his co-manager for the last 18 years.

They believe the flexibility of the fund is the key to its success. It can hold corporate and government bonds with different maturities and credit ratings and in different currencies. They also believe in diversification and the fund currently has more than 400 holdings, which is considerably more than most comparable funds.

They look for bonds with reasonable yields and hold a combination of longer-dated, lower-risk bonds and those that are slightly up the risk scale, although the fund's largest exposure at the end of 2016 was to BBB-rated bonds.

They say that by holding a good spread, striking the right balance and taking care in selecting individual bonds, they have been able to manage volatility and achieve consistent performance. They have also used currency purchases and sales to hedge against currency risk in the bond holdings and drive additional returns.

The fund does not have any fixed weightings to regions, countries or industry sectors. At the end of 2016, it was around a third invested in UK bonds and a quarter in US securities.

Sterling and the dollar were also the main currency exposures. With the new Trump administration likely to issue more US government bonds, the managers are expecting more volatility in bond markets in the months to come.

3 Year Performance
Fund Performance18%
Average of Rated Funds Group18.3%
Sector Performance12.1%
Fund information
Fund name
Marlborough Global Bond P Inc
Fund manager company
Marlborough Fund Managers
Fund type
Unit Trust
Fund managers
  • Nicholas Coolingsince 08/09/1998
  • Geoff Hitchinsince 04/08/1987
Accolades
Winner - Small Fund - Global Bond
Fund objective
The objective of the scheme is to provide both income and capital growth by investing mainly in fixed interest securities.
Benchmark
  • Mstar (IA) Global Bond
Investment style
None
Investment method
Fixed Interest
Quick stats
1 Year return
0.2%
1 Year rank in sector
34/65
Sector
UT Global Bonds
Yield
3.4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.44%
Fund size
£320m (£215m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
44
Bid price
152.59
Offer price
154.52
Top in this sector
Fund name1 Year
Threadneedle EurpHdBd7.8%
M&G European Hi Yld Bd7.2%
S&W Loch Moy6.2%
M&G European Corp Bd6%
Aberdeen Euro Corporate Bond5.5%
...more in UT Global Bonds

Performance snapshot

Holdings snapshot

  • UK32.4%
    North America29.4%
    Europe ex UK17.8%
    Money Market9.8%
    Emerging Asia2.4%
  • BBB39.5%
    Non-Rated18.1%
    BB13.3%
    Money Market9.8%
    A9.6%
  • UK Fixed Interest32.4%
    North American Fixed Interest29.4%
    Europe ex UK Fixed Interest17.8%
    Money Market9.8%
    Asia Pacific Fixed Interest2.9%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-1.3%-2.2%-3.7%0.2%18%27.9%
Sector-0.9%-1.5%-2.4%0.5%12.1%11.5%
Rank within sector54 / 6953 / 6953 / 6834 / 6514 / 545 / 50
Quartile4th4th4th3rd2nd1st
Calendar performance
 YTD - 20182017201620152014
Fund-2.4%4%16.6%1.2%10.5%
Sector-1.4%2.3%12.6%-1.3%3.8%
Rank within sector56 / 6915 / 6523 / 6014 / 544 / 51
Quartile4th1st2nd2nd1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
1.22
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.9
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.27
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
6.23
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
1.85
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.42
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.92
Price movement
52 week high161.12
52 week low151.94
Current bid price152.59
Current offer price154.52
Current mid price-
Region
1UK32.4%
2North America29.4%
3Europe ex UK17.8%
4Money Market9.8%
5Emerging Asia2.4%
6Central & S America2.3%
7Others2.1%
8Australasia1.8%
9Asia1.1%
Industry sector
1BBB39.5%
2Non-Rated18.1%
3BB13.3%
4Money Market9.8%
5A9.6%
6AA3.5%
7B2.8%
8Others1.8%
9AAA1.5%
Asset type
1UK Fixed Interest32.4%
2North American Fixed Interest29.4%
3Europe ex UK Fixed Interest17.8%
4Money Market9.8%
5Asia Pacific Fixed Interest2.9%
6Asia Pacific Emerging Fixed Interest2.4%
7American Emerging Fixed Interest2.3%
8Global Fixed Interest2.1%
9Middle East & African Fixed Interest0.9%
Individual holdings
1TESCO PERSONAL FINANCE PLC 5.2% STG BDS 24/08/18 GBP1000.75%
2BEAZLEY IRELAND HLDGS PLC 5.375% NTS 25/09/19 GBP1000.6%
3IMPERIAL BRANDS FINANCE PLC 4.875% GTD NTS 07/06/32 GBP1000000.6%
4BOC AVIATION PTE LTD 5.421% BDS 03/03/21 AUD2000000.59%
5HEALTH CARE REIT INC 4.5% BDS 01/12/34 GBP1000000.57%
6WALGREENS BOOTS ALLIANCE 3.6% BDS 20/11/25 GBP1000000.54%
7MCDONALD`S CORP 5.875% EUR MED TERM NTS 23/4/32 GBP10000.53%
8MORRISON(WM.)SUPERMARKETS 3.5% NTS 27/07/26 GBP1000000.53%
9ENW FINANCE PLC 5.875% BDS 21/06/21 GBP1000000.52%
Management
Fund manager group
Marlborough Fund Managers
Fund manager company
Marlborough Fund Managers
Fund type
Unit Trust
Fund objective
The objective of the scheme is to provide both income and capital growth by investing mainly in fixed interest securities.
Benchmark
  • Mstar (IA) Global Bond
Investment style
None
Investment method
Fixed Interest
Fund managers
NameSinceBiography
Nicholas Cooling08/09/1998Nicholas joined the asset management company that went on to become Marlborough Investment Management as a fund manager in 1991. He was responsible for a total reorganisation of its investment processes, leading to significant expansion of the business. Nicholas is Deputy Chairman of Marlborough Fund Managers and Investment Director of Marlborough Investment Management.
Geoff Hitchin04/08/1987Geoff spent nearly 20 years as a tax officer and tax consultant before founding Marlborough Fund Managers in 1986 and launching the Marlborough Global Bond Fund in the following year. He went on to set up the Marlborough Bond Income Fund in 1998.
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Marlborough Global Bond A Acc
Initial charge5%
Annual charge1.13%
Min single investment£1,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.19%
Total expense ratio (TER)1.21%
Bid price258.37
Offer price273.09
Mid price-
CurrencyGBX
Price updated19/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeJE82
Marlborough Global Bond A Inc
Initial charge5%
Annual charge1.13%
Min single investment£1,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.19%
Total expense ratio (TER)1.19%
Bid price151.22
Offer price159.88
Mid price-
CurrencyGBX
Price updated19/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNA04
Marlborough Global Bond B Acc
Initial charge5%
Annual charge0.63%
Min single investment£50,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)0.69%
Total expense ratio (TER)-
Bid price176.91
Offer price186.97
Mid price-
CurrencyGBX
Price updated19/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeI3OV
Marlborough Global Bond B Inc
Initial charge5%
Annual charge0.63%
Min single investment£50,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)0.69%
Total expense ratio (TER)-
Bid price151.49
Offer price160.16
Mid price-
CurrencyGBX
Price updated19/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeI3OU
Marlborough Global Bond P Acc
Initial charge1%
Annual charge0.38%
Min single investment£1,000,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)0.44%
Total expense ratio (TER)-
Bid price184.04
Offer price186.37
Mid price-
CurrencyGBX
Price updated19/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeI3OX
Marlborough Global Bond P Inc
Initial charge1%
Annual charge0.38%
Min single investment£1,000,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)0.44%
Total expense ratio (TER)-
Bid price152.59
Offer price154.52
Mid price-
CurrencyGBX
Price updated19/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeI3OW
Data provided by

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