View more on these topics

T Bailey mines specialist funds for exposure to resources

Multi-manager T Bailey Asset Management says it is keeping an eye on Oceanic Asset Management’s new Australian resources fund although it prefers to access opportunities in the region through global resources funds.

T Bailey has been bullish about the resources sector for the past three years.

However, a review of its growth fund at the end of June showed that a lot of the underlying managers of general equity funds were underweight in oil and gas because good opportunities could be found outside the resources sector.

The T Bailey growth fund has therefore put £2.2m into Investec’s global resources fund to compensate for the underweight position of general equity funds. It also holds JP Asset Management’s natural resources fund.

T Bailey believes resources stocks are best accessed via specialist managers. In the large-cap market, it says stocks such as BP and Shell are so well researched that only an expert can gain an advantage.

It says exploration stocks at the smaller end of the market need someone with knowledge of the quality of oil fields and with a high level of due diligence, which determines whether a speculative investment is good or bad.

Growth fund co-manager Jason Britton says: “We may look at the Oceanic fund but at the moment we are invested in two very good managers in the sector.

“We prefer to have global funds that can dip in and out of the Australian market as opportunities occur.”

Recommended

Framlington set for fund merger

Framlington is to merge its 18m New Leaders and 30m managed portfolio funds into its 49m managed growth fund under chief investment officer Jeremy Lodwick. The New Leaders fund was launched five years ago to invest in the new world economy by investing in seven business sectors – healthcare, leisure, financial services, internet, technology, media […]

Friendly gets £5m go-ahead

The Pension Annuity Friendly Society has been given the go-ahead to demutualise by its policyholders in a move that will secure a £5m war chest. The demutualisation, exclusively revealed in Money Marketing in June, will see Pafs rebranded as Partnership Assurance and pay out £6.2m in windfalls to 7,800 members who will get a minimum […]

Regulator taped IFA during visit

While I was a partner of Berkeley Wodehouse Associates, the FSA chose to visit in a thoroughly high- handed manner relating to an ongoing pension enquiry when such matters were at their height. The FSA demanded a private room, had their own recorder and refused us the same privilege. They did not even permit us […]

Yorkshire offers new offset tracker for life

Yorkshire Building Society is launching a new offset account that will track the Bank of England base rate for the full term of the mortgage.It offers borrowers a tracker rate 0.45 per cent above the Bank of England base rate, currently 4.95 per cent.Homeowners are also offered unlimited overpayments and no early repayment charges.Yorkshire Building […]

Tech winners keep on winning

By Ali Unwin, chief technology officer & fund manager, Neptune Artificial intelligence, driverless cars, big data. As technological advancements – and disruption – increasingly dominate headlines, Ali Unwin sets out six key themes he is watching in 2017. Read more Important Information Investment risks Neptune funds may have a high historic volatility rating and past performance […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment