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T. Bailey caps TER for new fund at 0.99 per cent

T. Bailey is capping the total expense ratio of its new international equity fund at 0.99 per cent for its leading unit class.

Mirroring the asset allocation of an existing actively managed fund, the T Bailey growth fund lite will be a passive-only fund of funds investing in exchange traded funds and trackers. 

The investment boutique says its fund of funds team will combine global asset allocation and active management with cost-effective passive instruments. 

T. Bailey chief investment officer Jason Britton and fund manager Elliot Farley will run the fund. Britton says the fund offers the performance and risk benefits of active portfolio management and the cost savings of passive investing.

The fund’s strategic asset allocation at launch will be 25 per cent in America, 25 per cent in the UK, 17.5 per cent in emerging markets, 15 per cent in Europe ex-UK, 7.5 per cent in Japan and 10 per cent in the Pacific Basin ex-Japan.

The launch is set for later this month and is subject to approval by the Financial Services Authority.

T.Bailey head of marketing and communications Philippa Gee says: “Investors can be assured that this TER isn’t just an introductory offer that will drift outwards in a few months.”

Britton says: “Passive investing is more complex than is often credited – over the long term many trackers seriously underperform the index they’re following, then there are issues of cost, risk and, of course, the challenge of building a sensibly balanced portfolio.

“It’s not surprising that many investors just opt for a FTSE-100 tracker. But then they end up with more money in Cadburys or British Airways than in emerging markets. This fund is ground-breaking in that it offers the performance and risk benefits of active portfolio management and the cost savings of passive investing.”


Minghella awarded an OBE

Outgoing chief executive of the Financial Services Compensation Scheme Loretta Minghella has been awarded an OBE for services to the financial services industry in the Queen’s New Year’s honours list. Minghella is leaving the FSSC in the spring after five years in the role. Other members of the financial services industry to be awarded honours […]

Wilson steps down as chairman of Personal Touch

Personal Touch Financial Services chairman Martin Wilson has stepped down from the network. Wilson was suspended from PTFS in November pending an internal investigation, although at the time, nobody at the network would comm- ent on the details, saying it was “an internal matter”. Wilson says this has been resolved without any disciplinary issue and […]

Skandia UK COO and finance director made redundant

Skandia UK’s chief operating officer John Tomlins, finance director Simon Lloyd and platforms delivery director Tim Mann are all being made redundant. At Skandia Investment Group, Steve Kowal and head of investment research Tom Berger are also leaving.

Who pays inheritance tax and how to declare it

By Kim Jarvis, Canada Life In this article we look at which forms personal representatives (PRs) need to complete and who actually pays inheritance tax (IHT).  To recap, under current rules, any part of the estate that falls within the available nil-rate band (NRB), currently £325,000, is taxed at zero. Anything in excess of the NRB […]


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. remember “trackers are crackers” article you wrote Jason? so whats changed? and how do you distinguish your two products in the global growth sector ? is this like either Premium brand at more cost or tescos type brand and reduced cost but ostenibly do the same job?

    am confused to be fair how you diffrentiate the two products and who this is aimed at?

  2. We still believe trackers are crackers when you invest in one tracker fund alone and miss out on global diversification.

    The new product we are planning to launch will be for the passive investor and the existing T. Bailey Growth Fund is for the active investor, which we believe are both quite separate markets. Research tells us that those who choose to go down the passive route still want the benefit of active asset allocation but have trouble accessing it, hence the new product. Statistically we can show the outperformance our active approach adds, but we recognise that some investors choose to invest on a passive basis and we felt it right to offer a fund of funds approach for them as well.

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