CityWire.co.uk – Multi-manager specialist T Bailey is to pay the fixed costs of its new Cautious Managed fund to ensure early investors are not penalised by their impact while the fund gains critical mass.<\/p>\n
Fixed costs on the new fund \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 such as audit fees, regulatory charges and trustee costs \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u0153 are expected to add up to between \u00c3\u201a\u00c2\u00a310,000 and \u00c3\u201a\u00c2\u00a315,000 a year. On a \u00c3\u201a\u00c2\u00a310 million fund, a likely size for the fund during its early days, the costs would produce a 10 to 15 basis point drag on performance.<\/p>\n
T Bailey\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s Citywire AA-rated fund of funds manager Jason Britton, who will be managing the new fund with colleague Richard Martin, told Citywire: \u00c3\u00a2\u00e2\u201a\u00ac\u00cb\u0153It\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s unfair for early investors to suffer this performance drag. It\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s like asking people to pay more for giving you their support.’<\/p>\n
Britton said the money will come from the marketing budget. \u00c3\u00a2\u00e2\u201a\u00ac\u00cb\u0153I find it amazing what other groups will spend on advertising but not helping out real investors,\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2 he said.<\/p>\n