Marlborough European Multi-Cap Fund Class P Income

European Equities

Rated Fund 2017-19. Bias towards small and micro-capitalisation companies

Marlborough European Multi Cap has slipped down the performance tables over the past year, but remains the top performer in its sector over three and five years. It was named Money Observer’s Best European Fund in 2018.

The fund can invest in companies of any size though, in keeping with many Marlborough funds, tends to favour small and micro-sized companies. At the end of 2018, these businesses accounted for almost 65% of the portfolio.

David Walton has run the fund since 2013. Will Searle joined as his deputy in 2017. The pair focuses heavily on finding the right companies. They point out that the beauty of European markets is the number of companies they have to choose from and the diversity of the businesses.

They undertake thorough research to find the companies they wish to invest in, which involves hundreds of meetings each year. They believe that they need to understand how the companies and their managements operate if they are to discover the most promising European businesses.

They set three tests that they expect companies to pass. First, they need to have good managers who have ideally already steered their firms through one or two past recessions so that they can be confident they have the talent to do it again. Second, they look for companies with above-average growth prospects and third, they want to buy a company’s shares when they are undervalued. If they like a company but feel its shares are too expensive, they will monitor it.

The managers have deployed more capital over the past year, taking advantage of attractive valuations and reducing the fund’s cash allocation from 15% to 9%.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Marlborough European Multi-Cap Fund Class P Income
Marlborough Fund Managers Limited
Unit Trust
Europe Excluding UK
0.82 %
Risk Rating
3 Year Sharpe
3 Year Alpha
1.4 %
IA Europe Excluding UK
The objective of the Scheme is to obtain capital growth.
Holding %
Sbanken ASA 2.13 %
Enea AB 1.94 %
Swedol AB B 1.94 %
Loomis AB B 1.75 %
Ebro Foods SA 1.75 %
H+H International A/S 1.70 %
Telepizza Group SA 1.64 %
Proact IT Group AB 1.59 %
NN Group NV 1.58 %
Sesa SpA 1.51 %
Region %
Eurozone 60.59 %
Europe - ex Euro 37.64 %
Sector %
Industrials 26.19 %
Consumer Cyclical 20.58 %
Technology 19.87 %
Financial Services 10.58 %
Consumer Defensive 6.91 %
Healthcare 6.30 %
Basic materials 6.00 %
Marlborough Fund Managers Limited
BL1 4QP, Bolton, United Kingdom
Legal Structure
Unit Trust


David Walton
Joined 10/01/2013

David graduated with a First Class degree in economics from Cambridge University before joining M&G, where he was a European equities fund manager with responsibility for small/mid caps. In 2000 David joined Baillie Gifford, where he took on responsibility for the European small cap portfolios including the Baillie Gifford European Smaller Companies Fund, and delivered strong outperformance. David joined the investment team in January 2013 and has managed the Marlborough European Multi-Cap Fund since October 2013.

Data provided by Morningstar.

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