T. Bailey's new passive-only global equity fund has gained FSA authorisation and will launch on 25 January 2010.
The T. Bailey Growth Fund LITE, whose leading unit class will have a TER capped at 0.99%, is the company's first passive-only fund of funds to be constructed of ETFs and trackers and to mirror the asset allocation of an existing actively managed fund.
Its asset allocation will follow that of the firm's successful T. Bailey Growth Fund, which includes just 25% benchmark exposure to the UK and 17.5% exposure to emerging markets.* The T. Bailey Growth Fund has delivered top quartile performance since its launch ten years ago (Source: Lipper to 13/12/09).
T. Bailey Head of Marketing and Communications Philippa Gee said: "We knew there was a need among passive investment fans for a low-cost retail vehicle that delivers an actively managed global portfolio of expertly selected ETFs and trackers, but we've been overwhelmed by the response from advisers to the new fund."
T. Bailey has taken the LITE theme one step further with the launch brochure taking a rather cheerful approach. Gee said: "It's not a guffaw on every page, but it's more 'lite-hearted' than traditional fund brochures. We've tried to communicate the concept in a way clients will understand without being dull or patronising."
T. Bailey Growth Fund LITE will be available for a minimum lump sum investment of £1,000 or £50 a month. The brochure can be downloaded from the firm's website:
http://www.tbailey.co.uk/funds/t-bailey-growth-fund-lite---new-fund-launch
Sheridan Admans, investment adviser at The Share Centre said: "T. Bailey's innovative combination of active asset allocation and use of passive low-cost funds should benefit the long-term investor who prefers their assets professionally managed with competitive charges. T. Bailey's endeavours in this market space should present a healthy challenge to competitors."
* The starting asset allocation of the T. Bailey Growth Fund is: UK 25%, US 25%, Emerging Markets 17.5%, Europe (ex UK) 15%, Japan 7.5% and Pacific Basin (ex Japan) 10%. This is actively managed to help capture growth and reduce risk.
Please note that units in the T. Bailey Growth Fund LITE fund will not be issued or otherwise made available prior to 25th January 2010. The Simplified Prospectus and Application Forms for the T. Bailey Growth Fund LITE will be made available on the T. Bailey Website (www.tbailey.co.uk/literature) from this date.
Submitted by: Philippa Gee
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