Marlborough Multi-Cap Income Cell

Marlborough Multi-Cap Income is a cell of Marlborough International Fund PCC Limited, a Guernsey-domiciled collective investment scheme which acts as a feeder fund into the UK-domiciled Marlborough Multi Cap Income fund.

Marlborough Multi Cap Income is a UK equity income fund that takes a different approach. Instead of focusing on the same limited number of FTSE 100 giants that dominate so many equity income portfolios, manager Sid Chand Lall identifies the strongest opportunities across the market cap spectrum.

While he does hold FTSE 100 stocks, he has a bias to faster-growing small and mid-cap dividend-paying companies in the FTSE 250,AIM, FTSE SmallCap and FTSE Fledgling indices. This increases the number of opportunities from around 90 stocks to approximately 700.

As well as benefiting from the superior long-term growth potential of smaller companies, this multi-cap strategy allows the construction of a portfolio far more broadly diversified by industry sector and market capitalisation than is possible for a fund focused primarily on the main divided-paying companies in the FTSE 100. To help manage stock-specific risk, the portfolio is diversified across more than 100 companies, with even the largest positions usually only representing 3%-3.5% of the fund.