Fact sheet: Marlborough UK Micro Cap Growth

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.
UK SMALL COMPANIES
Sector
UT UK Smaller Companies
Fund type
Unit Trust
Primary aim
GROWTH
Why Money Observer Rates Marlborough UK Micro Cap Growth

Rated Fund 2013-2017. Meeting the management to find the best companies

This fund has been run since inception by Giles Hargreave, a highly experienced smaller companies specialist. His co-manager for the last four years is Guy Field. It invests in companies with a market capitalisation of £250 million or less at the time of purchase.

In fact, a considerable proportion of the portfolio is invested in companies of less than £150 million. Companies at this end of the size spectrum are at higher risk of failure than more established firms, but the managers offset this risk by holding a diversified portfolio of more than 200 holdings.

Hargreave and his team analyse each company carefully. They very rarely invest in a company without meeting the management face-to-face. Hargreave says choice is a great advantage of investing in small companies. The Aim, FTSE Small Cap, FTSE Fledgling and FTSE techMark indices include more than 1,000 companies operating in many different fields.

He and Field are backed by a large team undertaking primary research, trying to uncover the best opportunities before the rest of the market. As part of the process they meet more than 25 companies every week.

They like companies that are operating in niche markets, without too many competitors. But these companies also need good managers, strong balance sheets and good free cash flow.

They try to identify companies that will continue to produce good results, and will run their winners rather than taking profits early. Although they keep economic trends in mind, they focus primarily on the health of their companies.

3 Year Performance
Fund Performance33.1%
Average of Rated Funds Group35.6%
Sector Performance22.8%
Fund information
Fund name
Marlborough UK Micro Cap Growth P Acc
Fund manager company
Marlborough Fund Managers
Fund type
Unit Trust
Fund managers
  • Giles Hargreavesince 03/10/2004
  • Guy Feldsince 01/02/2012
Accolades
Highly Commended - UK Small / Mid Cap
Fund objective
The objective of the scheme is to provide a total return* of capital and income in excess of that achieved by the FTSE Small Cap Index (excluding investment companies) over the medium to long term. The Scheme will be actively managed on a total return basis investing primarily in UK companies having a market capitalisation of £250m or less at the time of purchase. A considerable proportion of the portfolio will be invested in smaller companies with a market capitalisation of less than £150m at the time of purchase. At times it may be appropriate for the Scheme not to be fully invested but to hold cash and near cash. The Scheme may also invest in other transferable securities, including but not limited to, warrants and government and public securities and units in collective investment schemes. The Scheme is permitted to invest in derivatives and forward transactions for the purposes of hedging only. *Investors should be aware that there is no guarantee that this objective will be achieved over this (or any) time period and that your capital is in fact at risk.
Benchmark
  • Mstar (IA) Uk Smaller Cos
Investment style
Growth
Investment method
Shares
Quick stats
1 Year return
23.8%
1 Year rank in sector
11/49
Sector
UT UK Smaller Companies
Yield
0.7%
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.
0.8%
Fund size
£742m (£499m 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.
88
Bid price
605.64
Offer price
613.31
Top in this sector
Fund name1 Year
Cavendish AIM41.6%
The MI Discretionary Unit32.8%
Jupiter UK Smaller Companies29.1%
Schroder UK Dynamic Sm Cos27.8%
Old Mutual UK Sm Cos27%
...more in UT UK Smaller Companies

Performance snapshot

Holdings snapshot

  • UK90.9%
    Money Market4%
    Europe ex UK1.8%
    Australasia1.4%
    North America0.8%
  • Industrials24.2%
    Technology21.1%
    Consumer Services16.5%
    Consumer Goods11.1%
    Health Care8.1%
  • UK Equities90.9%
    International Equities4.5%
    Cash & Cash Equivalents4%
    Others0.6%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-0.6%8.5%11%23.8%33.1%114%
Sector0.7%7.4%10%17.8%22.8%90.3%
Rank within sector41 / 4915 / 4919 / 4911 / 4918 / 4718 / 45
Quartile4th2nd2nd1st2nd2nd
Calendar performance
 YTD - 20172016201520142013
Fund7.2%15.1%13.9%3.5%39.8%
Sector6.6%7.7%14.2%-1.9%37.4%
Rank within sector19 / 495 / 4831 / 4810 / 4718 / 46
Quartile2nd1st3rd1st2nd
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.
3.03
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.
1.06
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.
0.55
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%.
12.42
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.
5.89
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.
0.55
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.
0.78
Price movement
52 week high611.49
52 week low442.26
Current bid price605.64
Current offer price613.31
Current mid price-
Region
1UK90.9%
2Money Market4%
3Europe ex UK1.8%
4Australasia1.4%
5North America0.8%
6Others0.6%
7Middle East/ Africa0.4%
8Asia0.1%
Industry sector
1Industrials24.2%
2Technology21.1%
3Consumer Services16.5%
4Consumer Goods11.1%
5Health Care8.1%
6Financials7.1%
7Cash & Cash Equivalents4%
8Basic Materials3.3%
9Oil & Gas1.9%
Asset type
1UK Equities90.9%
2International Equities4.5%
3Cash & Cash Equivalents4%
4Others0.6%
Individual holdings
1FEVERTREE DRINKS PLC1.75%
2NEXT FIFTEEN COMMUNICATIONS GROUP1.71%
3QUIXANT PLC1.69%
4ACCESSO TECHNOLOGY GRP PLC1.54%
5CLINIGEN GROUP PLC1.4%
6GAMES WORKSHOP GROUP1.24%
7KEYWORDS STUDIOS PLC1.24%
8Smart Metering Systems Plc1.23%
9FDM GROUP PLC1.14%
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 a total return* of capital and income in excess of that achieved by the FTSE Small Cap Index (excluding investment companies) over the medium to long term. The Scheme will be actively managed on a total return basis investing primarily in UK companies having a market capitalisation of £250m or less at the time of purchase. A considerable proportion of the portfolio will be invested in smaller companies with a market capitalisation of less than £150m at the time of purchase. At times it may be appropriate for the Scheme not to be fully invested but to hold cash and near cash. The Scheme may also invest in other transferable securities, including but not limited to, warrants and government and public securities and units in collective investment schemes. The Scheme is permitted to invest in derivatives and forward transactions for the purposes of hedging only. *Investors should be aware that there is no guarantee that this objective will be achieved over this (or any) time period and that your capital is in fact at risk.
Benchmark
  • Mstar (IA) Uk Smaller Cos
Investment style
Growth
Investment method
Shares
Fund managers
NameSinceBiography
Giles Hargreave03/10/2004After starting his career in 1969 as an analyst with James Capel, Giles joined Management Agency and Music as a private fund manager in 1974 before founding Hargreave Investment Management in 1986. Giles then merged Hargreave Investment Management with Hargreave Hale & Co, a provincial stockbroking firm controlled by other members of his family, in 1988. As Chief Executive, Giles chairs the weekly investment committee meetings in which the team reviews existing and potential investments for all the funds.
Guy Feld01/02/2012Guy, a graduate of Oxford University, has over 20 years City experience dedicated to the research and fund management of small and mid-cap equities. He joined the investment team in 2003 and has a particular focus on the tech sector and other “New Economy” and growth companies. Guy co-manages the Marlborough UK Micro-Cap Growth Fund with Giles Hargreave.
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
Marlborough UK Micro Cap Growth A
Initial charge5%
Annual charge1.5%
Min single investment£1,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.55%
Total expense ratio (TER)1.52%
Bid price583.1
Offer price617.04
Mid price-
CurrencyGBX
Price updated23/03/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeQM31
Marlborough UK Micro Cap Growth B Acc
Initial charge1%
Annual charge1%
Min single investment£50,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)1.05%
Total expense ratio (TER)1.51%
Bid price606.99
Offer price614.67
Mid price-
CurrencyGBX
Price updated23/03/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeHRC2
Marlborough UK Micro Cap Growth P Acc
Initial charge1%
Annual charge0.75%
Min single investment£1,000,000
Min regular saving£1,000
Available in ISAYes
Ongoing charge (OCF)0.8%
Total expense ratio (TER)-
Bid price605.64
Offer price613.31
Mid price-
CurrencyGBX
Price updated23/03/2017
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeI3PI
Data provided by

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