Fund of funds specialist T. Bailey is planning to change the benchmark of its flagship T. Bailey Growth Fund, which celebrates its tenth birthday this month.
The changes to the fund, which has delivered top quartile performance since its launch in December 1999, follow feedback from IFAs.
Historically the T. Bailey Growth Fund has had a composite benchmark that mirrored its strategic asset allocation (see figure 1). If its new plans win unitholder approval, from 1 January 2010 the benchmark will be the IMA Global Growth sector average.
Figure 1. Current T. Bailey Growth Fund benchmark
Index % of Benchmark
FTSE All-Share 25.0
S&P 500 (US) 25.0
FTSE World Series Europe (ex. UK) 15.0
Topix (Japan) 7.5
MSCI AC Far East (ex. Japan) 10.0
MSCI Emerging Markets 17.5
T. Bailey Head of Sales and Marketing Philippa Gee said the change would make it easier for advisers and investors to monitor the fund’s performance against its peers.
She stressed that the asset allocation would remain the same. She said: “Asset allocation has been a key driver of this fund’s success in the past ten years and the underlying process remains unaltered – we’re just making it simpler to measure our success.”
The fund’s objectives are also being simplified to reflect its new benchmark. The fund will aim to provide capital growth over the medium to long term and to outperform the IMA Global Growth sector average over rolling three-year periods.
Since launch the T. Bailey Growth Fund has outperformed the IMA Global Growth sector average by 27.2% as at 1 December 2009 (Source: Lipper). Please bear in mind that past performance is no guide to future returns.
T. Bailey Chief Investment Officer Jason Britton said: “Over the past ten years we have comfortably outperformed the IMA Global Growth Sector average. We’ve built a powerful reputation for strong asset allocation, fund selection and active management – the team are looking forward to delivering that winning combination for a second decade too!”
Submitted by: Philippa Gee
Websites are all very well, but sometimes only a very knowledgeable human will do. Please leave your details, and we’ll call you back.
Request call backLearn more about our truly bespoke alternative to mainstream ACD and
fund administration
services.
The value of your investment and the income derived from it can go down as well as up, and you may not get back the money you invested. When investing in retail unit classes, capital appreciation will be affected by the impact of initial charges and you should therefore view your investment as a medium to long-term holding.