Marlborough Multi Cap Income Fund NEW LAUNCH

cashbackproblems

Hi

Just got a letter from HL stating the above new fund will be launched and if you buy before 29th June you can buy each unit for £1!

Is anyone considering taking advantage? Surely long term it will only increase?

le_loup

Erm ... that's not a special introductory offer, you know. If nothing changes, the units will still be worth a pound the following day!

cashbackproblems

http://www.hl.co.uk/funds/new-fund-launches/marlborough-multi-cap-income-fund-new-launch

What do you mean? Surely the price could go down? If it can only increase, why wouldnt everyone not buy into it?

atypical

I like how they talk about a "special deal" and then talk about a "fixed launch price of £1" as if there's some other type of launch price that they're protecting you from, the knights that they are.

Techno

in the bumph that comes with it they are saying that the fund mananger, Giles Hargreave (ooh hope there's no 'keep it in the family going on' ) has also been running the Marlborough Special Situations fund (launched in 1995) which according to them has been the 'top performing fund across all sectors and then some'. They are comparing him to Neil Woodford who runs several Invesco Perpetual funds. They feel this new fund will be more nimble and able to target opportunities not available to the very big funds.

Might be worth a punt for me based on his reputation if the underlying investments seem sound.

Totton

It concerns me that this new launch jumps straight into the 150, this is probably more to do with marketing than actual analysis of the fund but I have been taking a good look at it as a possible purchase.

I am tempted by it but then I've been tempted by the Marlborough Special Situations fund for a long time without actually buying it. I do like the 'smaller' fund houses (boutiques) which is a positive for this fund launch though.

Interestingly the charges on this fund are slightly higher than for the Special Sits fund which has a good reputation. I also note that the 'cashback' from the trail commission is 0.1% rather than 0.15% annually, whilst the TER of the Multi Cap is slightly higher at 1.55% to 1.51%. The small percentages may add up to a significant amount when compounded over a few years, hence the higher charges need to be outweighed by growth potential and I'm not sure that this new launch will outperform their Special Sits fund when both will have many similar holdings.

Possibly the difference to make a decision on will be the sector which is UK Equity Income versus UK Smaller Co's, which do you think will perform better over time etc?

For UK Equity Income I prefer to use the White List as a guide so that may rule out this new launch for me as it will not get listed there for 3 years. On balance I prefer the Special Situations fund so will go back and take another look at it versus Artemis Smaller Co's etc.

There are pluses for a new fund launch, good potential of an uplift etc but also there is nothing to lose by waiting awhile to see if the Mid/Small Co's benefit the fund when compared to other UK Equity Inc funds such as Troy Income. On another front, my preference for Equity Income is to start looking at Global Income rather than adding more UK to the pot.

I think the Marlborough fund has a good chance of doing well but it's not for me at this time.

Regards,
Mickey