T. Bailey is set to launch a UK Best Ideas fund on 1 October, consisting of 10 equally weighted UK equity offerings.
The multi-manager specialists say the best ideas fund, classified in the IMA UK All Companies sector, will combine fund of funds and conviction investing ideas.
T. Bailey sales director Rob McGrath says the product, which is expected to hold 25 to 50 stocks, will complement its T. Bailey Growth fund.
“The fund should appeal to those who are looking for a UK equity fund of funds managed by a proven team which offers the scope for growth over the long term,” he says.
“It will showcase some of the most exciting UK funds available in the marketplace today in one easy to access product.”
Fund co-manager Jason Britton says the T. Bailey product will be structured as a fund of funds, not a manager of manager proposition like Skandia’s best ideas offering.
“Traditionally funds of funds have delivered much stronger investment performance than managers of managers because funds of funds are more flexible, react to market circumstances more quickly and are able to replace underperforming managers more expediently,” he says.
T. Bailey highlights IMA All Companies research in the year to 31 July 2007, which it says shows fund of funds vehicles outperforming manager of manager funds by 2.3%.
“One of the investment successes of this decade has been the emergence of more choice amongst actively managed alpha-generating UK funds regardless of whether they go by the moniker of focus, unconstrained, alpha or whatever,” Britton says.
“We will be looking for talented managers with the freedom to back their judgements and allocate their capital in the best interests of investors.”
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