View more on these topics

T Bailey is backing investment trusts

T Bailey Asset Management is holding investment trusts in its equity income fund of funds because it believes they currently represent a good short-term trading strategy in the pursuit of income.

The company will not hold investment trusts in its growth fund of funds because the objective is sufficiently met by a long-term buy-and hold strategy using open-ended funds.

But the ability to make shorter-term plays on the high yields produced by some investment trusts is attractive to T Bailey fund managers Jason Britton and Richard Martin. They believe multi-managers should at least consider investment trusts before dismissing them.

T Bailey’s equity income fund of funds now holds 80 per cent of its portfolio in open-ended funds and 20 per cent in investment trusts such as Merchants and Shires smaller companies. Investment trust exposure is unlikely to inc- rease but may be reduced to zero if felt appropriate.

The current investment trust holdings were chosen because although they were trading at a discount, Britton and Martin expected these discounts to narrow. According to Britton, some of the trusts are now trading at a premium to their net asset value, which he sees as justifying their inclusion.

Britton says: “This topic has become a bit of a hot potato. A lot of trusts have been downgraded, rather harshly I think, as a result of the negative publicity surrounding split caps.

“Some groups have said that they would not want to touch investment trusts because there are liquidity issues and they might get caught out by widening discounts. But we felt that as Ucits III has given us the flexibility to invest in them it is only right and proper to consider them if this could benefit our unitholders.”


Eurolife’s bond investors to vote on partial payout

Thousands of investors in the Eurolife secured bond are being asked to vote on a partial repayment plan to recoup some of the £17m losses. Around 2,300 investors should have been repaid capital on January 23 but have had to wait three weeks for news of the restructuring proposal. The proposal issued by Eurolife involves […]

Ingenious spices up VCT market

Ingenious Ventures, the private equity arm of specialist media finance business Ingenious Media, has established a music venture capital trust which has Simon Fuller the brains behind the Spice Girls and Pop Idol on its board of directors.

IFA faces fraud charges

Nottinghamshere IFA Stephen Higham, 53, a director of Oaktree Financial Services, has appeared in Newark court charged with fraud.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm