Bestinvest says
A high percentage of dividends by value paid by UK companies are attributable to a small number of large companies, so UK income funds are typically heavily weighted towards these blue chip dividend payers. By focusing more on small and mid cap companies this new fund offers diversification to income streams, as well as potentially greater capital growth. Though the Marlborough team, led by Giles Hargreave, lack a track record on income funds they have an a strong record in small cap investing – their Marlborough Special Situations and Marlborough UK Micro Cap Growth funds both carry 3 star Bestinvest ratings. However this part of the market is generally less liquid and so can be more volatile relative to larger companies.
The investment universe covers around 700 dividend paying stocks from across the UK market, including the FTSE 100, FTSE 250, FTSE Small Cap and Fledgling indices and the AiM market. The investment process is bottom up driven and value aware. However, the team reviews the macroeconomic environment monthly and at times the portfolio may have some thematic orientation, including modest style tilts. Ideas are generated internally, via the broker community and through other external contacts. Giles Hargreave is part of a team of 6 - the size of the team enables him to monitor a large percentage of the investment universe. The team carries out all its own research on companies, which includes analysis of financial statements and meeting with company management.