Marlborough High Yield Fixed Interest Fund

Marlborough High Yield Fixed Interest invests in a broadly diversified portfolio of more than 100 high yield bonds issued by companies in the UK and overseas. Businesses issuing these bonds can be more vulnerable to changing market conditions and as a result they typically pay higher interest rates than companies whose bonds are ‘investment grade’.

Co-managers Ben Pakenham and Adam Tabor work with a large and highly experienced investment team, with the resources to conduct their own intensive research into individual companies. They look for bonds issued by businesses whose ability to repay the money loaned to them is stable to improving, but this has not been recognised by other investors – creating a ‘mispricing opportunity’.

They seek to outperform their peers through this rigorous analysis of companies, while at the same time adjusting the overall level of risk taken and the sectors in which the fund invests to reflect changes in the macroeconomic environment.