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Marlborough International Management Limited USD Managed Portfolio Service – April 2018

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Page 1: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Marlborough International Management LimitedUSD Managed Portfolio Service – April 2018

Page 2: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Marlborough Group

UFC PLC

MIM LTD

MFM LTD

IFSLLTD

MINT LTD

DiscretionaryPortfolio Management business with Circa £250mAUM

Core Unit TrustBusiness withCirca £5.6bnAUM

CoreAdministration business withCirca £4.26bnAUM

InternationalFunds business withCirca £270mAUM

Page 3: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Marlborough Investment Teams

Category Principal Manager(s) UK Funds / Products

Multi Asset Nicholas Cooling, Gurjit Soggi, Rajesh Manon, Sarah Todino

Marlborough DefensiveMarlborough CautiousMarlborough BalancedMarlborough GlobalAnd the Discretionary Service

Fixed InterestGeoff Hitchin & Nicholas Cooling Marlborough Bond Income

Marlborough Global BondSteven Logan, Ben Pakenham & Team Marlborough High Yield Fixed Interest

UK Equities Giles Hargreave, Richard Hallett, Siddarth Chand Lall, Guy Feld, George Findlay, Eustace Santa Barbara.

Marlborough UK Multi-Cap Growth Marlborough Special Situations Marlborough Multi Cap Income Marlborough UK Micro-Cap Growth Marlborough Extra Income

Overseas Equities

Brad Weafer & Brad Gardner Marlborough US Multi-Cap Income

David Walton & Team Marlborough European Multi-Cap

Sally Macdonald & Jing Liang Marlborough Far East Growth

Sally Macdonald & FOF Team Marlborough Emerging Markets

Specialist Stacey Ash & Nigel Baynes Marlborough ETF Commodity Marlborough ETF Global Growth

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The Fund of Funds Team

Nicholas Cooling - Deputy Chairman

Marlborough Balanced Growth Fund - From launch to Present

Nicholas Cooling was born in Liverpool in 1964 and was educated at Monmouth School. After graduating in 1985 with a BA (Hons) degree in Geography Nicholas joined Lloyds Life Assurance Limited in Peterborough. After a short period at TSB Unit Trust Management Ltd Nicholas was recruited by UFC to bring its investment operation, which had previously been contracted out, in-house and to redesign the Investment Process.

Gurjit Soggi - Associate Director Managed Funds

Marlborough Cautious - From 1 October 2000 to Present Marlborough Global - From 22nd February 1999 to Present

Gurjit Soggi was born in Derby in 1973. He attended the University of the West of England, achieving a BA (Hons) in Financial Services. After graduation he joined Marlborough during 1996. He worked within the investment team from day one, initially analysing unit trusts and OEIC’s, and working closely with the investment director Nicholas Cooling. This gave him the platform to take responsibility for one of the Marlborough Fund of Funds in 1999.

Raj Manon – Fund Manager (Co-Manager to the Fund of Funds range)

Marlborough International Multi-Asset Balanced Fund –From 1st June 2005 to present.

Raj Manon was born in Middlesbrough in 1979 and was educated in Leicester. He graduated from Sheffield Hallam University in 2002 with a BA (Hons) in Financial Services. Since joining in 2003 he has become an invaluable member of the fund of funds team, lead managing one of our offshore sister company’s mirror Balanced Funds, and acting as support on all three onshore products.

Sarah Todino – Investment Analyst

Sarah Todino works as an analyst within the fund of funds team. Sarah was recruited by Marlborough in Autumn 2006 after graduating from The University of Birmingham with a Bachelor of Commerce degree. Within the programme, Sarah studied modules within the areas of economics, accounting and marketing.

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Team Experience

Nicholas Cooling BA (Hons) (FCSI)Qualifications – FPC, IMC, PCIAM, Chartered Wealth ManagerJoined July 1991 – 26 years’ service.

Gurjit Soggi BA (Hons) (Financial Services) (FCSI)Qualifications – IMC, PCIAM, Chartered Wealth ManagerJoined November 1996 – 21 years’ service

Raj Manon BA (Hons) (Financial Services) (MCSI)Qualifications – IMC, CFA Level 3 CandidateJoined March 2003 – 14 years’ service.

Sarah Todino BCom (ACSI)Qualifications – IMC, CFA Level 2 CandidateJoined July 2006 – 11 years’ service

The Team collectively has 72 years’ experience and is supported by two dealers and an administrative assistant as well as having on site compliance support in Lichfield and remote compliance support from Bolton.

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Risk Graded Fund Management

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• 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 for 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.

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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 four potential portfolios and to then plot their risk and reward co-ordinates.

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HeadingHeadingPreliminary Results

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• 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 capable of 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.

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HeadingHeadingRisk/Reward Scatter Chart

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Risk graded fund management

Model Maximum Equity Weighting Yield Risk Profile Risk Grade

Defensive 20% 2.74% Low 2

Defensive/Cautious 40% 2.28% Low/Moderate 3

Cautious 60% 1.81% Moderate 4

Cautious/Balanced 73% 1.56% Moderate/High 5

Balanced 85% 1.31% Moderate/High 6

Balanced/Adventurous 93% 0.76% Moderate/High 7

Adventurous 100% 0.20% High 8

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Defensive – Assets

Fund Allocation

Marlborough International Global Bond Cell 53.90%

Marlborough International Bond Income Cell 24.50%

Marlborough International High Yield Fixed Interest Cell 9.80%

Marlborough International US Multi-Cap Income Cell 4.90%

Marlborough International Global Cell 4.90%

Cash 2.00%

Total 100.00%

Portfolio Yield 2.74%

Risk Grade 2

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Defensive – Top 20 Holdings

Top 20 Underlying Holdings of a Risk Grade 2 Portfolio %Tesco Psl Fin 5.2 240818 0.41%Artemis US Extended Alpha Instl GBP Acc 0.36%Old Mutual North American Acc 0.35%Beazley 5.375% 25/09/19 0.31%Impl Brands 4.875 070632 0.31%Welltower 4.5 11234 0.30%Boc Aviat 5.375 030321 0.29%Bhp Billiton Fin 221077 0.29%Icap Plc 5.5% 31/07/2018 0.29%Robo Global Robotics and Automation Go UCITS ETF 0.28%Amer Intl Gp Inc 5 260423 0.28%Axa 5.453 Frn Sub Perp 0.28%Centrica Fxd Rt 100475 0.27%Volkswagen 3.875 14/06/27 0.27%Morrison(Wm ) 3.5 270726 0.27%Walgreens Boots All 3.6 0.27%Mcdonald'S 5.875 230432 0.27%Loomis Sayles US Equity Leaders N/A G 0.27%Spain (King) 5.25 6429 0.27%Man GLG Continental Europe C Acc 0.27%Top 20 Weighting 5.91%

Total Number of Holdings 884

Risk Grade 2

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Defensive/Cautious – Assets

Fund Allocation

Marlborough International Global Bond Cell 41.65%

Marlborough International Bond Income Cell 17.15%

Marlborough International US Multi-Cap Income Cell 14.70%

Marlborough International Global Cell 9.80%

Marlborough International High Yield Fixed Interest Cell 9.80%

Marlborough International European Multi-Cap Cell 2.45%

Marlborough International Multi-Cap Income Cell 2.45%

Cash 2.00%

Total 100.00%

Portfolio Yield 2.28%

Risk Grade 3

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Defensive/Cautious – Top 20 Holdings

Top 20 Underlying Holdings of a Risk Grade 3 Portfolio %Artemis US Extended Alpha Instl GBP Acc 0.71%Old Mutual North American Acc 0.70%Microsoft Corp Com Stk Us 0.64%Jp Morgan Chase & Co Com 0.62%Kar Auction Services Inc 0.61%Apple Inc Com Stk Npv 0.59%Bank Of America Corp Com 0.58%Robo Global Robotics and Automation Go UCITS ETF 0.57%Loomis Sayles US Equity Leaders N/A G 0.54%Mastercard Inc 0.54%Blackrock Inc Npv A 0.54%Broadridge Financial Sol 0.54%Man GLG Continental Europe C Acc 0.53%Crown Castle Reit 0.51%Carter'S Inc 0.48%Fidelity American Special Situations W 0.48%United Health Group Com S 0.48%Home Depot Inc Common Usd 0.48%Qualcomm Inc 0.46%Chevron Corp Com Stk Usd0 0.44%Top 20 Weighting 11.03%

Total Number of Holdings 1,148

Risk Grade 3

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Cautious – Assets

Fund Allocation

Marlborough International US Multi-Cap Income Cell 24.50%

Marlborough International Global Bond Cell 29.40%

Marlborough International Global Cell 14.70%

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%

Cash 2.00%

Total 100.00%

Portfolio Yield 1.81%

Risk Grade 4

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Cautious – Top 20 Holdings

Top 20 Underlying Holdings Of A Risk Grade 4 Portfolio %Microsoft Corp Com Stk Us 1.07%Artemis US Extended Alpha Instl GBP Acc 1.07%Old Mutual North American Acc 1.06%Jp Morgan Chase & Co Com 1.03%Kar Auction Services Inc 1.01%Apple Inc Com Stk Npv 0.98%Bank Of America Corp Com 0.96%Mastercard Inc 0.90%Blackrock Inc Npv A 0.90%Broadridge Financial Sol 0.89%Robo Global Robotics and Automation Go UCITS ETF 0.85%Crown Castle Reit 0.85%Loomis Sayles US Equity Leaders N/A G 0.81%Carter'S Inc 0.81%United Health Group Com S 0.80%Home Depot Inc Common Usd 0.80%Man GLG Continental Europe C Acc 0.80%Qualcomm Inc 0.76%Chevron Corp Com Stk Usd0 0.73%Fidelity American Special Situations W 0.72%Top 20 Weighting 17.80%

Total Number of Holdings 1,148

Risk Grade 4

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Cautious/Balanced – Assets

Fund Allocation

Marlborough International US Multi-Cap Income Cell 26.95%

Marlborough International Global Cell 11.025%

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 4.90%

Marlborough International Special Situations Cell 2.45%

Cash 2.00%

Total 100.00%

Portfolio Yield 1.56%

Risk Grade 5

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Cautious/Balanced – Top 20 Holdings

Top 20 Underlying Holdings of a Risk Grade 5 Portfolio %Microsoft Corp Com Stk Us 1.17%Jp Morgan Chase & Co Com 1.13%Kar Auction Services Inc 1.12%Apple Inc Com Stk Npv 1.08%Bank Of America Corp Com 1.06%Mastercard Inc 0.99%Blackrock Inc Npv A 0.99%Broadridge Financial Sol 0.98%Crown Castle Reit 0.93%Carter'S Inc 0.89%United Health Group Com S 0.88%Home Depot Inc Common Usd 0.88%Qualcomm Inc 0.84%Artemis US Extended Alpha Instl GBP Acc 0.80%Chevron Corp Com Stk Usd0 0.80%Old Mutual North American Acc 0.79%Becton Dickinson 0.75%Steris Corp 0.68%Cme Group Inc Usd0.01 A 0.67%Costco 0.66%Top 20 Weighting 18.09%

Total Number of Holdings 1,411

Risk Grade 5

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Balanced – Assets

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 Special Situations 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 1.31%

Risk Grade 6

Page 22: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Balanced – Top 20 Holdings Risk Grade 6

Top 20 Underlying Holdings of a Risk Grade 6 Portfolio %Microsoft Corp Com Stk Us 1.28%Jp Morgan Chase & Co Com 1.24%Kar Auction Services Inc 1.22%Apple Inc Com Stk Npv 1.18%Bank Of America Corp Com 1.15%Mastercard Inc 1.08%Blackrock Inc Npv A 1.07%Broadridge Financial Sol 1.07%Crown Castle Reit 1.02%Carter'S Inc 0.97%United Health Group Com S 0.96%Home Depot Inc Common Usd 0.96%Qualcomm Inc 0.92%Chevron Corp Com Stk Usd0 0.87%Becton Dickinson 0.81%Steris Corp 0.74%Cme Group Inc Usd0.01 A 0.74%Costco 0.72%Eversource Energy 0.71%Air Products & Chemicals 0.71%Top 20 Weighting 19.43%

Total Number of Holdings 1,411

Risk Grade 6

Page 23: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Balanced/Adventurous – Assets Risk Grade 7

Fund Allocation

Marlborough International US Multi-Cap Income Cell 22.05%

Marlborough International Far East Growth Cell 17.15%

Marlborough International European Multi-Cap Cell 14.70%

Marlborough International Global Cell 11.025%

Marlborough International Special Situations Cell 9.80%

Marlborough International UK Micro-Cap Cell 7.35%

Marlborough International Multi-Cap Income Cell 4.90%

Marlborough International Bond Income Cell 3.675%

Marlborough International Global Bond Cell 3.675%

Marlborough International High Yield Fixed Interest Cell 3.675%

Cash 2.00%

Total 100.00%

Portfolio Yield 0.76%

Risk Grade 7

Page 24: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Balanced/Adventurous – Top 20 Holdings Risk Grade 7

Top 20 Underlying Holdings of a Risk Grade 7 Portfolio %Microsoft Corp Com Stk Us 0.96%Jp Morgan Chase & Co Com 0.93%Kar Auction Services Inc 0.91%Apple Inc Com Stk Npv 0.88%Bank Of America Corp Com 0.87%Mastercard Inc 0.81%Blackrock Inc Npv A 0.81%Broadridge Financial Sol 0.80%Artemis US Extended Alpha Instl GBP Acc 0.80%Old Mutual North American Acc 0.79%Crown Castle Reit 0.76%Carter'S Inc 0.73%United Health Group Com S 0.72%Home Depot Inc Common Usd 0.72%Qualcomm Inc 0.69%Chevron Corp Com Stk Usd0 0.65%Robo Global Robotics and Automation Go UCITS ETF 0.64%Becton Dickinson 0.61%Loomis Sayles US Equity Leaders N/A G 0.61%Alibaba Grp 0.60%Top 20 Weighting 15.29%

Total Number of Holdings 1,686

Risk Grade 7

Page 25: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Adventurous – Assets

Fund Allocation

Marlborough International Far East Growth Cell 24.50%

Marlborough International US Multi-Cap Income Cell 14.70%

Marlborough International European Multi-Cap Cell 14.70%

Marlborough International Global Cell 14.70%

Marlborough International Special Situations Cell 14.70%

Marlborough International UK Micro-Cap Cell 14.70%

Cash 2.00%

Total 100.00%

Portfolio Yield 0.20%

Risk Grade 8

Page 26: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Adventurous – Top 20 Holdings Risk Grade 8

Top 20 Underlying Holdings of a Risk Grade 8 Portfolio %Artemis US Extended Alpha Instl GBP Acc 1.07%Old Mutual North American Acc 1.06%Alibaba Grp 0.85%Robo Global Robotics and Automation Go UCITS ETF 0.85%Loomis Sayles US Equity Leaders N/A G 0.81%Man GLG Continental Europe C Acc 0.80%Fidelity American Special Situations W 0.72%Bank Of China Ltd Cny 'H' 0.72%Posco 0.67%Microsoft Corp Com Stk Us 0.64%Jp Morgan Chase & Co Com 0.62%China Railway Sgnl Com 0.61%Kar Auction Services Inc 0.61%Cimc Enric Holdings Ltd 0.60%Samsung Electronics Prf 0.59%Apple Inc Com Stk Npv 0.59%Bank Of America Corp Com 0.58%Tencent Hldgs Limited 0.57%China Ovsrs Lnd & Inv Ltd 0.57%Schroder ISF Asian Opportunities 0.56%Top 20 Weighting 14.10%

Total Number of Holdings 738

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HeadingHeading

Risk Description Risk Grade Return(Annualised)

Risk (Standard Deviation)

Defensive 2 3.11% 8.58

Defensive/Cautious 3 3.46% 9.31

Cautious 4 3.70% 10.64

Cautious/Balanced 5 4.22% 12.07

Balanced 6 4.67% 13.63

Balanced/Adventurous 7 5.37% 15.25

Adventurous 8 5.97% 17.03

Using 20 years of data.

Risk/Reward Data

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HeadingHeadingRisk/Reward Scatter Chart

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HeadingHeadingAll Investment Grades - One Year Chart

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HeadingHeadingAll Investment Grades - Three Year Chart

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HeadingHeadingAll Investment Grades - Five Year Chart

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HeadingHeadingAll Investment Grades - Ten Year Chart

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HeadingHeadingAll Investment Grades - Twenty Year Chart

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Proposition Summary

• MIM can make available a point of sale risk analysis tool which can be 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 be responsible for cash management to ensure sufficient available to meet liabilities

• MIM will produce six monthly valuation reports

• MIM will charge 0.25% plus Vat per annum for its services.

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HeadingHeadingContact details

Rod GuestInternational Sales Manager+44 (0)7540 [email protected]

Stephen WoodhallInternational Sales Manager+971 50 880 [email protected]

Linda McLarenHead of Business Development+44 (0) 7986 972844 [email protected]

Page 36: Marlborough International Management Limited USD Managed ... · Marlborough International Management Limited. USD Managed Portfolio Service – April 2018. Marlborough Group . UFC

Risk Warning for Professional Clients

Before you take the decision to invest some of your clients’ money you should read and consider this Risk Warning.

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 8 risk graded model portfolios are constructed to create a hierarchy of risk but greater risk does not necessarily guarantee greaterperformance 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.

Before making an investment on behalf of your clients you should read the Managed Portfolio Solutions document which contains the information you will need about the 8 risk graded model portfolios.

Forward looking statements are based on Marlborough’s current opinions and opinions expressed are subject to change without notice. Documents relating to Marlborough’s Managed Portfolio Solutions 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 first contacting Marlborough for permission to communicate such material as a financial promotion. None of the available documentation has been approved by Marlborough Investment Management for this purpose.

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The past is not necessarily a guide to future performance. Investments and the income derived from them can fall as well as rise and the investor may not get back the amount originally invested. Marlborough International Fund PCC Limited (the “Fund”) is authorised as a Class ‘B’ collective investment scheme under the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended. It is not protected by any investor compensation scheme. The Fund is subject to an initial charge and consequently charges are not madeuniformly throughout the period of the investment. Forward looking statements are based on Marlborough’s current opinions andopinions expressed are subject to change without notice. The individual cells of the Fund act as feeder funds to various UK-authorisedcollective investment schemes which may invest in smaller companies and those listed on the alternative investment market (AIM) which carry a higher degree of risk than larger companies. The shares of smaller companies may be less liquid and their performance more volatile over shorter time periods. Investments in fixed interest securities are subject to market and credit risk and will be impacted by interest rates. Investments in higher yielding bonds issued by borrowers with lower credit ratings may result in a higher risk of default and have a negative impact on income and capital value. On the Bond Income, High Yield Fixed Interest and Marlborough Multi Cap Income funds, some or all of the annual manager’s charge is deducted from capital rather than income; future capital growth may be constrained as a result. The Marlborough European Multi-Cap and Bond Income funds may use derivatives to protect the value of the Fund's assets or to reduce the costs of investing, although this may not be achieved. It is not anticipated that the use of derivatives will have any significant effect on the risk profile of the Fund. This document is provided for information purposes only and should not be interpreted as investment advice. The Key Investor Information Documents and/or the Full Prospectus for all schemes is available free of charge and can be obtained by contacting us directly using the contact details contained in this document, alternatively the documents can also be obtained via our website at www.marlboroughfunds.com. Please note that for your protection telephone calls may be recorded. This material is a communication to professional advisers only and should not be disclosed by such advisers to their customers or other non-professional individuals without first contacting Marlborough for permission to communicate this material as a Financial Promotion. It has not been approved by Marlborough Fund Managers Limited for this purpose. This presentation may contain FTSE data. Source: FTSE International Limited (“FTSE”) © FTSE 2018. “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.

Risk Warning – Master Funds

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Risk Warning – Protected Cell Company

For professional investors only. Investment may only be made on the basis of the current Prospectus. The following is a summary only of some key items in the Prospectus. Investors in Protected Cell Company (PCC) must have the financial expertise and willingness to accept the risks inherent in this investment. These risks include inter alia, the fact that neither the past performance nor operating history of the Company is a guarantee of future performance. It should be appreciated that the value of Shares is not guaranteed and may go down as well as up and that investors may not receive, on redemption of their Shares, the amount that they originally invested. Investors should consult their professional advisers about the consequences to them, and inform themselves of the legal requirements for, acquiring, holding, exchanging redeeming or disposing of Shares under the relevant laws of the jurisdictions to which they are subject, including any tax consequences, exchange control requirements, requisite governmental or other consents and any other formalities. If you are in any doubt about the action you should take, you should consult a suitably qualified and licensed or authorised professional adviser who specialises in advising on the acquisition of shares and other securities. Investment in the Company should only be undertaken as part of a diversified investment portfolio. Investment in the Shares should be viewed as a medium term investment. Shares may not be redeemed otherwise than on any Dealing Day. The Shares of the Company are not listed on any stock exchange and it is not anticipated that there will be any secondary market in the Shares.

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Important Information and Disclosures

It should be noted that the value of investments and the income from them may go down as well as up. The investment policy and process of the Fund may not be suitable for all investors.

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 Fund Managers 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 the fund’s returns and has been calculated using Monthly data.

Back tested Performance: The performance information presented in certain charts or tables represent back tested performance based on combined simulated data and live (or actual) sector average data. Back tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes only to indicate historical performance had the portfolios been available over the relevant time period.

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.