T Bailey to merge away Defensive fund
Multi-manager firm T Bailey is set to merge its £14.7m Defensive fund into its Dynamic fund on October 1, subject to shareholder approval.
Peter Askew, a senior fund manager at the firm, said retail investors had tended to opt for the £26.6m Dynamic fund, which aims to outperform its IA Mixed Investment 20%-60% Shares peer group over the medium to long-term.
The Defensive fund, which sits in the same sector, has the same primary objective, and a secondary objective of returning CPI plus two per cent.
Mr Askew added the group has also tabled a proposal to make a return of CPI plus three per cent the primary objective of the Dynamic fund.
Both the Defensive and Dynamic funds are jointly managed by Mr Askew and Elliot Farley.
The latter is top quartile over the past three years, having returned 22 per cent compared with a 15.6 per cent average sector return.
If approved, the merger leaves the firm with two funds in total - the second of which is its £180m Growth portfolio.