T Bailey

Investment Process

Step 2. Tactical asset allocation - detail

Through tactical asset allocation the actual allocations used on any particular day for the funds are continuously reviewed and managed within the ranges permitted.

To give two examples, the chart below shows the tolerance ranges for the T. Bailey Growth Fund and the T. Bailey Cautious Managed Fund.

These are the ranges within which value can be added through tactical asset allocation by the fund of funds manager.

T. Bailey Growth Fund

Equities:
UK
0%-50%
North America
0%-50%
Europe ex. UK
0%-30%
Japan
0%-20%
Pacific Basin ex. Japan
0%-20%
Emerging Markets
0%-30%
Cash & other investments
0%-20%

T. Bailey Cautious Managed Fund

Asset Classes:
Equities
0%-60%
Fixed Interest
0%-60%
Property
0%-30%
Other
0%-30%
Cash & cash equivalents
0%-30%
Other
0%-30%

We believe asset allocation is vital. The following page demonstrates the importance of asset allocation.



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