View more on these topics

T Bailey sitting out turbulence in cash

The T Bailey growth fund is holding cash for only the second time in almost seven years because the managers say the markets are currently so difficult to call.

Managers Jason Britton and Richard Martin prefer the fund to be fully invested but have built up a 7.5 per cent weighting in cash after reducing an overweight position in emerging markets after the recent sell-off.

T Bailey is still upbeat on emerging markets in the long term but its exposure is now more in line with the fund’s benchmark. The managers are still deciding where to reinvest the cash balance but say the holding will only be a short-term measure.

The company says that a lot of multi-managers go overweight without any benchmark constraints in sectors that are performing well in the short term.

However, T Bailey says it prefers its underlying managers to be free from constraints while its own asset allocation decisions are based on not straying too far from its benchmark. It says this approach has helped the growth fund outperform its benchmark every calendar year since launch.

Britton says: “Over the last seven months, the fund has been outperforming a number of our high-profile competitors. This is down to the type of fund we have. Our benchmark constraints have helped the fund perform well in the market shake-out.

“We have our own benchmark positions so we would never hold 30 per cent, for example, in one sector. We like managers who are unconstrai- ned but we recognise that risk control is important. We are not trying to take big bets, it is about not going too far.

“We have invested in a bit of cash, just while we see how the market goes, but we are looking to put it back into the market. I would rather do that than chop and change. I liken this summer’s market to a snowstorm. It is only recently that the picture has started to get a bit clearer.”


Numbers game

Principal, DPB Independent Financial Services, Edgware, Middlesex Vincent Cable thinks that higher-rate tax relief on pension contributions is “a direct subsidy to higher earners”. I have never heard the ability to keep for oneself some of your own earnings on the condition that it is put away in a fund (itself of value to the […]

Don’t worry, be happy

Dispensing advice on life, work and the benefits of selling protection

Land bank alert from FSA

The FSA has warned financial advisers to check the status of land banking companies before putting their clients into such schemes.The regulator says it is concerned over whether land banking schemes are collective investments and therefore subject to regulation.Schemes that are deemed to be collective, but where there is no regulation, would be operating illegally.It […]

Simon Fletcher

Auto-enrolment: pay attention or pay the price

By Simon Fletcher

As a chief executive officer of a business in the financial services sector, I have been dealing with the introduction of auto-enrolment for our clients for some time, but I can also speak from an employer’s point of view, having to go through the process ourselves.


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