T. BAILEY LAUNCHES NEW FUND
Initial asset allocation unveiled
Institutional terms available from just £1,000
Fund of funds specialist T. Bailey has unveiled its new defensive multi-asset cautious managed fund, launched yesterday.
The T. Bailey Defensive Cautious Managed Fund is aimed at investors who are targeting better returns than cash over the medium to long-term but haven’t the risk appetite for a fund with large exposure to equities.
Its long-term strategic equity allocation is 25%. The remainder of the portfolio will include asset classes such as corporate bonds, gilts, commodities, and property held via investment in other collective investment schemes.
Manager Elliot Farley said: “In the current volatile market environment we are taking a prudent approach. The equity exposure is built upon funds that target companies with strong balance sheets and proven, sustainable revenues. Around this core we have introduced our shorter term tactical themes.
“As a house we continue to believe equities are a central component to long-term returns but many investors haven’t the stomach for the rough ride equities alone can bring from month to month. They want much less volatility than you get from a 100% equity fund, but they also want their money to be working for them, and at the moment cash is just not delivering. There’s a real place for a defensively positioned multi-asset fund that is actively managed.”
A third of the Fund is to be invested in fixed interest funds at launch. Farley says he will also build a position in gold in the coming weeks. “We believe that gold has a lot further to rise and represents an attractive asset in the cautious mix at the moment.”
The Fund aims to outperform the IMA Cautious Managed Sector average AND with less volatility than the average fund in the sector, through a combination of well researched strategic asset allocation, good tactical asset allocation and rigorous fund selection.
T. Bailey has announced that it will offer institutional terms on the T. Bailey Defensive Cautious Managed Fund – with an Annual Management Charge (AMC) of just 0.75% – to investors for an initial investment of £1,000 or £50 a month. Most funds charge an AMC of 1.5%, which includes trail commission to financial advisers. Traditionally institutional terms offered by other investment houses, have only been available for large-scale investors with sums in the region of £100,000 to invest.
T. Bailey says the move has been introduced to benefit the growing number of fee-based advisers who would otherwise have to rebate trail commission to their clients and makes it RDR-ready.
-ENDS-
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