Marlborough Investment Management Limited - USD Managed Portfolio Service January 2021
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Marlborough Investment Management Limited USD Managed Portfolio Service January 2021
Marlborough Group
UFC PLC
MIM MFM IFSL MINT
LTD LTD LTD LTD
Discretionary Core Unit Core International
Portfolio Trust Administration Funds
Management Business with business with business with
business with Circa £6.1bn Circa £4.28bn Circa £300m
Circa £350m AUM AUM AUM
AUM
Marlborough Investment Teams
Category Principal Manager(s) UK Funds / Products
Marlborough Conservative
Marlborough Cautious
Nicholas Cooling, Gurjit Soggi, Raj
Multi Asset Marlborough Balanced
Manon
Marlborough Global
And the Discretionary Service
Geoff Hitchin, Daniel Fox & Niall Marlborough Bond Income
McDermott Marlborough Global Bond
Fixed Interest
Steven Logan, Ben Pakenham & Team Marlborough High Yield Fixed Interest
Marlborough UK Multi-Cap Growth
Giles Hargreave, Richard Hallett, Marlborough Special Situations
UK Equities Siddarth Chand Lall, Guy Feld, George Marlborough Multi Cap Income
Findlay, Eustace Santa Barbara. Marlborough UK Micro-Cap Growth
Marlborough Extra Income
Marlborough US Multi-Cap Income
Brad Weafer & Brad Gardner
Marlborough European Multi-Cap
David Walton & Team
Overseas Equities
Marlborough Far East Growth
Sally Macdonald & Jing Liang
Marlborough Emerging Markets
Jing Liang & Sally Macdonald
The Investment Team
Nicholas F.J. Cooling (BA) Hons Gurjit Soggi (BA) Hons
Chartered FCSI & Chartered Wealth Manager,
FCSI, IMC, PCIAM, Chartered Wealth Manager
Chief Investment Officer & Deputy Chairman
Marlborough Group Investment Manager
34 Years Investment Experience 24 Years Investment Experience
Raj Manon (BA) Hons Sarah Todino BCom
Chartered MCSI, Chartered Financial Analyst (CFA) IMC, Chartered MCSI
Investment Manager Investment Analyst
17 Years of Investment Experience 14 Years of Investment Experience
Kerri Burden
ACSI, IMC
Investment Analyst and Support
7 Years of Investment Experience
The Team collectively has 96 years’ experience and is supported by
a dealer and an administrative assistant as well as having on site
compliance support in Lichfield and remote compliance support
from the Bolton office.
4
The Investment Team
Gurjit Soggi – Associate Director Managed Funds
Nicholas Cooling - Deputy Chairman
Marlborough Cautious - From 1 October 2000 to Present
Marlborough Balanced Growth Fund - From launch to Present
Marlborough Global - From 22nd February 1999 to Present
Nicholas Cooling was born in Liverpool in 1964 and was educated
Gurjit Soggi was born in Derby in 1973. He attended the University of
at Monmouth School. After graduating in 1985 with a BA (Hons)
the West of England, achieving a BA (Hons) in Financial Services.
degree in Geography Nicholas joined Lloyds Life Assurance Limited
After graduation he joined Marlborough during 1996. He worked within
in Peterborough. After a short period at TSB Unit Trust
the investment team from day one, initially analysing unit trusts and
Management Ltd Nicholas was recruited by UFC to bring its
OEIC’s, and working closely with the investment director Nicholas
investment operation, which had previously been contracted out, in-
Cooling. This gave him the platform to take responsibility for the
house and to redesign the Investment Process. Nicholas is the co-
Marlborough Global Fund of Funds in 1999, followed by the
manager of the Fund of Funds and the Managed Portfolio Service.
Marlborough Cautious fund in 2000. Gurjit is the co-manager of the
Fund of Funds and the Managed Portfolio Service.
Raj Manon – Fund Manager Sarah Todino – Investment Analyst
Raj Manon was born in Middlesbrough in 1979 and was educated
Sarah Todino works as an analyst within the fund of funds team.
in Leicester. He graduated from Sheffield Hallam University in
Sarah was recruited by Marlborough in Autumn 2006 after
2002 with a BA (Hons) in Financial Services. After a short period
graduating from The University of Birmingham with a Bachelor of
with Barclays and the Alliance & Leicester, Raj joined
Commerce degree. Within the programme, Sarah studied
Marlborough in 2003. He has since become an invaluable
modules within the areas of economics, accounting and
member of the Fund of Funds team and he is the co-manager of
marketing. Sarah offers support to the Fund Managers with the
the Fund of Funds and the Managed Portfolio Service.
Fund of Funds and also the Managed Portfolio Service.
Kerri Burden – Investment Analyst Support
Kerri was recruited as part of an apprentice programme by
Marlborough in October 2013. Since joining she spent many years in
the dealing department and studying, which has led to a recent move
to become an Investment Analyst within the team. Kerri offers support
to the Fund Managers with the Fund of Funds and also the Managed
Portfolio Service.
Risk Graded Fund Management
• The regulated Collective Investment Scheme (CIS) market has come to be made up of funds where asset allocations are governed by sector/benchmark ‘rules’ established by entities such as the Investment Association, rather than being guided by fundamental investment reasons. • As a result we have “Cautious” portfolios which can actually be up to 60% in Shares, and Balanced portfolios that rather than being a balance of asset classes are actually as much as 85% invested in Shares. • This “old paradigm” dominates the investment landscape with the arbitrary structures it contains not particularly assisting clients to understand the risks to which they may be exposed or in understanding the investment returns which might be achieved.
Objective • Marlborough therefore set about the process of specifying a new range of portfolios with the objective of targeting certain risk and return outcomes rather than complying with benchmark/sector rules. • Our initial objective was to create an array of seven portfolios with risk and reward co- ordinates that define a straight line of progressively increasing equidistant outcomes. • Our process involved utilising our knowledge and experience of the historic returns and volatility of the available range of asset classes to specify seven potential portfolios and to then plot their risk and reward co-ordinates, with the results being shown on the following slide.
Preliminary Results
• Through a process of reverse engineering the initial asset allocations of the seven portfolios, we were able to adjust our original results to achieve the desired outcome of seven portfolios exhibiting a series of progressively escalating risk and reward co- ordinates accommodating a wide range of outcomes. • On an ongoing basis, again by utilising the reverse engineering process, we are able to ensure that asset allocations are progressively adjusted to achieve the desired set of outcomes, as shown on the following slide.
Desired range of risk and reward outcomes
Risk graded fund management
Maximum
Model Equity Yield Risk Profile Risk Grade
Weighting
Defensive 20% 1.88% Low 2
Defensive/Cautious 40% 1.73% Low/Moderate 3
Cautious 60% 1.59% Moderate 4
Cautious/Balanced 73% 1.42% Moderate/High 5
Balanced 85% 1.26% Moderate/High 6
Balanced/Adventurous 93% 0.84% Moderate/High 7
Adventurous 100% 0.42% High 8Defensive – Assets Risk Grade 2
Fund Allocation
Marlborough International Global Bond Cell 44.10%
Marlborough International Bond Income Cell 19.60%
Marlborough International High Yield Fixed Interest Cell 9.80%
Marlborough International US Multi-Cap Income Cell 17.15%
Marlborough International Global Cell 7.35%
Cash 2.00%
Total 100.00%
Portfolio Yield 1.88%Defensive – Top 20 Holdings Risk Grade 2 Top 20 Underlying Holdings of a Risk Grade 2 Portfolio % Microsoft Corp 1.43 Apple Inc 1.14 Broadridge Financial Solutions Inc 1.10 Watsco Inc 1.04 United States Treasury Bonds 2.25% 0.86 WR Berkley Corp 0.84 Becton, Dickinson and Co 0.80 Crown Castle International Corp 0.79 Sherwin-Williams Co 0.79 Steris PLC 0.78 Cogent Communications Holdings Inc 0.76 United Kingdom of Great Britain and Northern Ireland 4.5% 0.72 CRH Finance Plc 4.12% 0.65 Sky Limited 0.64 Enel - Societa per Azioni 5.75% 0.42 Verizon Communications Inc. 3.38% 0.40 McDonald's Corporation 0.37 AT&T Inc 4.38% 0.35 U.S. Treasury Security Stripped Interest Security 0.35 Great Places Housing Group Ltd 4.75% 0.32 Top 20 Weighting 14.54% # of holdings 750
Defensive/Cautious – Assets Risk Grade 3
Fund Allocation
Marlborough International Global Bond Cell 40.00%
Marlborough International Bond Income Cell 15.00%
Marlborough International US Multi-Cap Income Cell 20.00%
Marlborough International Global Cell 7.50%
Marlborough International High Yield Fixed Interest
Cell 10.00%
Marlborough International European Multi-Cap Cell 2.50%
Marlborough International Multi-Cap Income Cell 2.50%
Marlborough International Far East Growth Cell 2.50%
Cash 2.00%
Total 100.00%
Portfolio Yield 1.73%Defensive/Cautious – Top 20 Holdings Risk Grade 3 Top 20 Underlying Holdings of a Risk Grade 3 Portfolio % Microsoft Corp 1.73 Apple Inc 1.37 Broadridge Financial Solutions Inc 1.33 Watsco Inc 1.26 WR Berkley Corp 1.01 Becton, Dickinson and Co 0.98 Crown Castle International Corp 0.96 Sherwin-Williams Co 0.96 Steris PLC 0.95 Cogent Communications Holdings Inc 0.92 United States Treasury Bonds 2.25% 0.72 United Kingdom of Great Britain and Northern Ireland 4.5% 0.60 CRH Finance Plc 4.12% 0.51 Sky Limited 0.51 Enel - Societa per Azioni 5.75% 0.31 Verizon Communications Inc. 3.38% 0.30 U.S. Treasury Security Stripped Interest Security 0.29 McDonald's Corporation 0.28 AT&T Inc 4.38% 0.27 EDP Finance B.V. 8.62% 0.26 Top 20 Weighting 15.49% # of holdings 990
Cautious – Assets Risk Grade 4
Fund Allocation
Marlborough International US Multi-Cap Income Cell 24.50%
Marlborough International Global Bond Cell 29.40%
Marlborough International Global Cell 9.80%
Marlborough International Bond Income Cell 9.80%
Marlborough International European Multi-Cap Cell 4.90%
Marlborough International High Yield Fixed Interest Cell 9.80%
Marlborough International Multi-Cap Income Cell 4.90%
Marlborough International Far East Growth Cell 4.90%
Cash 2.00%
Total 100.00%
Portfolio Yield 1.9%Cautious – Top 20 Holdings Risk Grade 4 Top 20 Underlying Holdings Of A Risk Grade 4 Portfolio % Microsoft Corp 2.02 Apple Inc 1.61 Broadridge Financial Solutions Inc 1.56 Watsco Inc 1.48 WR Berkley Corp 1.19 Becton, Dickinson and Co 1.15 Crown Castle International Corp 1.13 Sherwin-Williams Co 1.12 Steris PLC 1.11 Cogent Communications Holdings Inc 1.08 United States Treasury Bonds 2.25% 0.57 United Kingdom of Great Britain and Northern Ireland 4.5% 0.48 CRH Finance Plc 4.12% 0.37 Sky Limited 0.37 Samsung Electronics Co Ltd Participating Preferred 0.33 Taiwan Semiconductor Manufacturing Co Ltd 0.30 Tencent Holdings Ltd 0.28 Sesa SpA 0.27 U.S. Treasury Security Stripped Interest Security 0.23 SK Hynix Inc 0.23 Top 20 Weighting 16.88% # of holdings 990
Cautious/Balanced – Assets Risk Grade 5
Fund Allocation
Marlborough International US Multi-Cap Income Cell 26.95%
Marlborough International Global Cell 8.58%
Marlborough International Global Bond Cell 18.375%
Marlborough International European Multi-Cap Cell 9.8%
Marlborough International Bond Income Cell 8.575%
Marlborough International Multi-Cap Income Cell 7.35%
Marlborough International High Yield Fixed Interest Cell 8.575%
Marlborough International Far East Growth Cell 7.35%
Marlborough International UK Multi Cap Growth Cell 2.45%
Cash 2.00%
Total 100.00%
Portfolio Yield 1.42%Cautious/Balanced – Top 20 Holdings Risk Grade 5 Top 20 Underlying Holdings of a Risk Grade 5 Portfolio % Microsoft Corp 2.19 Apple Inc 1.75 Broadridge Financial Solutions Inc 1.72 Watsco Inc 1.63 WR Berkley Corp 1.31 Becton, Dickinson and Co 1.26 Crown Castle International Corp 1.24 Sherwin-Williams Co 1.23 Steris PLC 1.22 Cogent Communications Holdings Inc 1.18 Sesa SpA 0.53 Samsung Electronics Co Ltd Participating Preferred 0.49 Harvia PLC Ordinary Shares 0.42 Tencent Holdings Ltd 0.42 Enea AB 0.40 Taiwan Semiconductor Manufacturing Co Ltd 0.39 United States Treasury Bonds 2.25% 0.36 SK Hynix Inc 0.31 United Kingdom of Great Britain and Northern Ireland 4.5% 0.30 H+H International A/S B 0.29 Top 20 Weighting 18.66% # of holdings 1,038
Balanced – Assets Risk Grade 6
Fund Allocation
Marlborough International US Multi-Cap Income Cell 29.40%
Marlborough International European Multi-Cap Cell 14.70%
Marlborough International Multi-Cap Income Cell 9.80%
Marlborough International Far East Growth Cell 9.80%
Marlborough International Global Cell 7.35%
Marlborough International UK Multi Cap Growth Cell 4.90%
Marlborough International Bond Income Cell 7.35%
Marlborough International Global Bond Cell 7.35%
Marlborough International High Yield Fixed Interest Cell 7.35%
Cash 2.00%
Total 100.00%
Portfolio Yield 1.26%Balanced – Top 20 Holdings Risk Grade 6 Top 20 Underlying Holdings of a Risk Grade 6 Portfolio % Microsoft Corp 2.36 Apple Inc 1.88 Broadridge Financial Solutions Inc 1.87 Watsco Inc 1.77 WR Berkley Corp 1.43 Becton, Dickinson and Co 1.37 Crown Castle International Corp 1.35 Sherwin-Williams Co 1.34 Steris PLC 1.33 Cogent Communications Holdings Inc 1.29 Sesa SpA 0.79 Samsung Electronics Co Ltd Participating Preferred 0.66 Harvia PLC Ordinary Shares 0.64 Enea AB 0.60 Tencent Holdings Ltd 0.56 Taiwan Semiconductor Manufacturing Co Ltd 0.49 H+H International A/S B 0.44 SK Hynix Inc 0.40 Xinyi Glass Holdings Ltd 0.38 Delta Plus Group 0.38 Top 20 Weighting 21.35% # of holdings 1,038
Balanced/Adventurous – Assets Risk Grade 7
Fund Allocation
Marlborough International US Multi-Cap Income Cell 34.70%
Marlborough International Far East Growth Cell 12.65%
Marlborough International European Multi-Cap Cell 13.60%
Marlborough International Global Cell 11.18%
Marlborough International UK Micro-Cap Cell 3.75%
Marlborough International Multi-Cap Income Cell 4.90%
Marlborough UK Multi Cap Growth 6.20%
Marlborough International Bond Income Cell 3.68%
Marlborough International Global Bond Cell 3.68%
Marlborough International High Yield Fixed Interest Cell 3.68%
Cash 2.00%
Total 100.00%
Portfolio Yield 0.84%Balanced/Adventurous – Top 20 Holdings Risk Grade 7 Top 20 Underlying Holdings of a Risk Grade 7 Portfolio % Microsoft Corp 2.81 Apple Inc 2.24 Broadridge Financial Solutions Inc 2.20 Watsco Inc 2.09 WR Berkley Corp 1.68 Becton, Dickinson and Co 1.62 Crown Castle International Corp 1.59 Sherwin-Williams Co 1.58 Steris PLC 1.57 Cogent Communications Holdings Inc 1.52 Samsung Electronics Co Ltd Participating Preferred 0.85 Sesa SpA 0.73 Tencent Holdings Ltd 0.72 Taiwan Semiconductor Manufacturing Co Ltd 0.65 Harvia PLC Ordinary Shares 0.59 Enea AB 0.56 SK Hynix Inc 0.52 Xinyi Glass Holdings Ltd 0.49 Alibaba Group Holding Ltd Ordinary Shares 0.42 H+H International A/S B 0.41 Top 20 Weighting 24.84% # of holdings 1,211
Adventurous – Assets Risk Grade 8
Fund Allocation
Marlborough International Far East Growth Cell 15.50%
Marlborough International US Multi-Cap Income Cell 40.00%
Marlborough International European Multi-Cap Cell 12.50%
Marlborough International Global Cell 15.00%
Marlborough International UK Micro-Cap Cell 7.50%
Marlborough International UK Multi-Cap Growth Cell 7.50%
Cash 2.00%
Total 100.00%
Portfolio Yield 0.42%Adventurous – Top 20 Holdings Risk Grade 8 Top 20 Underlying Holdings of a Risk Grade 8 Portfolio % Microsoft Corp 3.26 Apple Inc 2.60 Broadridge Financial Solutions Inc 2.53 Watsco Inc 2.40 WR Berkley Corp 1.93 Becton, Dickinson and Co 1.86 Crown Castle International Corp 1.82 Sherwin-Williams Co 1.82 Steris PLC 1.80 Cogent Communications Holdings Inc 1.75 Samsung Electronics Co Ltd Participating Preferred 1.04 Tencent Holdings Ltd 0.88 Taiwan Semiconductor Manufacturing Co Ltd 0.80 Sesa SpA 0.67 SK Hynix Inc 0.65 Xinyi Glass Holdings Ltd 0.60 Harvia PLC Ordinary Shares 0.54 Alibaba Group Holding Ltd Ordinary Shares 0.53 Enea AB 0.51 ICICI Bank Ltd ADR 0.46 Top 20 Weighting 28.45% # of holdings 398
Risk/Reward Data
Return Risk (Standard
Risk Description Risk Grade
(Annualised) Deviation)
Defensive 2 4.24% 9.88%
Defensive/Cautious 3 4.88% 10.73%
Cautious 4 5.50% 11.69%
Cautious/Balanced 5 6.14% 12.98%
Balanced 6 6.73% 14.35%
Balanced/Adventurous 7 7.45% 15.17%
Adventurous 8 8.14% 16.04%
Using data from 01/01/2003.Risk/Reward Scatter Chart
All Investment Grades - One Year Chart
All Investment Grades - Three Year Chart
All Investment Grades - Five Year Chart
All Investment Grades - Ten Year Chart
All Investment Grades - Twenty Year Chart
Proposition Summary
• MIM has made available a point of sale risk analysis tool which is used to ensure that
each client is directed towards the most suitable portfolio relative to their assessed
attitude to risk and capacity for loss
• Portfolios will be re-based quarterly to ensure that the appropriate risk attitude is
maintained
• MIM will charge 0.25% plus Vat per annum for its services.
• Portfolio TERs at January 2018 (inclusive of all charges, including MIM’s charge and
Trail Commission)
Model Name TER %
Defensive 1.56%
Defensive/Cautious 1.66%
Cautious 1.77%
Cautious/Balanced 1.78%
Balanced 1.79%
Balanced/Adventurous 1.84%
Adventurous 1.89%Contact details
Rod Guest
Linda Johnstone
International Sales Manager
Head of Business Development
+44 (0)7540 115891
+44 (0) 7986 972844
Rod.guest@marlboroughinternational.gg
Linda.johnstone@marlboroughfunds.comImportant Information and Disclosures
Target Market: The investment policy and process of the Service associated with this will:
• Be suitable for investors who are willing to take a level of investment risk that conflates with one (or part of one) of the
seven risk/reward outcomes;
• Not be suitable for investors who are unwilling to take any investment risk at all and only partly suitable for investors
whose attitude to risk is greater than that represented by risk profile 8.
Information Provided: This material is not necessarily a complete summary and is not intended, for example, as a
complete analysis. The information and data in this material has been prepared from sources believed reliable but is not
guaranteed in any way by Marlborough Investment Management Limited nor any affiliate. No representation is made that
the information or data is correct as of any time subsequent to its date.
Standard deviation: “which we are employing as representative of risk” is a statistical measure of the volatility of a
portfolio’s returns and has been calculated using Monthly data.
Back tested Performance: The performance information presented in certain charts or tables represents back tested
performance based on combined simulated data and sector average data. Back tested performance is hypothetical (it
does not reflect trading in actual accounts) and is provided for information purposes only to indicate historical performance
had the portfolios been available over the relevant time period. The portfolios launched in June 2016 meaning that
performance shown prior to then has been simulated.
Sector Averages: Sector definitions are mostly based on assets, such as equities and fixed income, and may also have a
geographic focus. Sectors are used to compare funds and to look at performance and fund charges. The sectors divide
up the funds into smaller groups, to allow like-for-like comparisons between funds in one or more sectors.Risk Warning for Professional Clients
• Before you take the decision to invest some of your clients’ money you should read and consider the Risk Warning on
this and the following slide.
• The past performance of an investment is not necessarily a guide to future performance. The value of investments and
the income derived from them can fall as well as rise and on redemption the investor may not get back the amount
originally invested. The 7 risk graded model portfolios are constructed to create a hierarchy of risk but greater risk does
not necessarily guarantee greater performance and the investor may experience a loss of capital and/or income in a low
risk portfolio.
• If the underlying funds hold securities denominated in different currencies changes in exchange rates may affect the
value of your clients’ investments. Where charges are taken wholly or partly out of an underlying fund's capital,
distributable income will be increased at the expense of capital which will either be eroded or future growth constrained.
• Underlying funds which invest in the securities of smaller and unquoted companies can involve greater risk than is
customarily associated with investments in larger, more established companies. The market for securities in smaller
companies is often less liquid than that for securities in larger companies, bringing with it potential difficulties in
acquiring, valuing and disposing of such securities. Proper information for determining their value or the risks to which
they are exposed may also not be available.
• It is not anticipated that the use of derivatives will have any significant effect on the risk profile of the portfolios.
• Forward looking statements are based on Marlborough’s current opinions and opinions expressed are subject to change
without notice.Risk Warning for Professional Clients
• Before making an investment on behalf of your clients you should read this Managed Portfolio Service document and
the other documents on the site thoroughly, as they contain the information you will need about the 7 risk graded model
portfolios.
• Documents relating to Marlborough’s Managed Portfolio Service are provided for information purposes only and should
not be interpreted as investment advice. All documents are available free of charge and can be obtained on the site.
• Please note that all documents are communications to professional advisers only and should not be disclosed by such
advisers to their customers or other non-professional individuals without Marlborough’s permission. None of the
material on this website has been approved by Marlborough Investment Management Limited for use as a Financial
Promotion.
• This presentation may contain FTSE data. Source: FTSE International Limited (“FTSE”) © FTSE 2021. “FTSE®” is a
trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence.
All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors
accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further
distribution of FTSE Data is permitted without FTSE’s express written consent.You can also read
