Best In Class  

Best in Class: Marlborough European Multi-Cap

Once an idea is identified, one member of the team will analyse the company.

Cashflow and growth potential of a company are scrutinised, while quantitative analysis will focus on studying the financial statements. The team will then look to meet senior management – if a meeting has not already taken place.

Any final decisions and stock weightings rest with Mr Walton.

The fund is well-diversified with around 90 different holdings. Positions are kept fairly small to minimise stock-specific risk and to maximise the liquidity of the fund.

The fund has no sector limits, but the manager is conscious of sector exposure.

The fund’s largest holdings at present include Italian IT firm SeSa Spa (3.7 per cent), global healthcare behemoth Roche (3.1 per cent) and Finnish’s heater, sauna and spa manufacturer Harvia (3.1 per cent).

Fund performance has been excellent during mr Walton's tenure, returning 110.3 per cent, compared with 52.5 per cent for the Investment Association Europe ex-UK sector. The fund has an ongoing charges figure of 0.83 per cent.

You get a bit of everything with this fund, but the fact that it is backed by a stellar small-cap team, and a manager who has been very successful at mitigating the risks that are typically associated with smaller companies, builds a compelling argument for including this fund in a portfolio.

Darius McDermott is managing director of FundCalibre