View more on these topics

T Bailey mega move for growth fund

T Bailey has increased exposure to FTSE 100 stocks within its growth fund of funds to its highest-ever level.

FTSE 100 stocks comprise 62 per cent of the fund’s UK exposure after T Bailey recently added the FTSE top 20 ex miners note, a structured product, to the portfolio. This provides 170 per cent of the growth in an equally weighted basket of the 20 biggest stocks on the FTSE 100, excluding mining stocks. Mining stocks were excluded as the portfolio has sufficient exposure to mining and commodities through the JPM natural resources fund, which has been held in the portfolio for five years.

Until now, T Bailey has favoured the mid and small-cap sectors, remaining overweight in these areas when some fund firms forecast the end of their outperformance in 2005. T Bailey has benefited from further outperformance over the last two years by maintaining its position but it believes bigger companies are now staging a comeback.

Mega-cap stocks have lagged behind the FTSE 250 for the last four years but T Bailey expects FTSE 100 stocks to lead the market over the coming months. In particular, it believes the 20 biggest stocks on the index will outperform. These will hold up better than mid and small-sized companies if markets continue to fall back or benefit from any flight to quality.

Co-fund manager Jason Britton says: “The problem is it is hard to add value consistently at that end of the market, given how efficient the market is at the mega-cap end. Most stockpickers favour fishing among the medium and small companies as more pricing anomalies occur in those waters.

“We have used a structured product to get genuine exposure to mega caps and to further add performance through its upside gearing, with 170 per cent participation.”

Recommended

C&G puts focus on 100% loans

Cheltenham & Gloucester is set to focus on developing its 100 per cent and buy-to-let propositions after announcing last week that it will be moving broker support to a centralised location.The firm is also axing 31 of its 195 branches in November, affecting 315 staff.The structural changes also mean that C&G is cutting its business […]

British Insurance homeloan cover

British Insurance is offering a new mortgage payment protection insurance product underwritten by Norwich Union and distributed by Paymentshield.

Propertyfinder.com publishes August index

Propertyfinder.com’s August index has found that 83 per cent of home buyers and sellers currently expect house prices to rise over the next twelve months, by an average of 5 per cent.This would equate to around half of the rate of house price inflation of the last 12 months.Despite expectations of a slowdown, the research […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com