No, we do not provide financial advice. We provide information to help you decide whether our funds are right for you. If you are unsure whether investing is right for you, you might wish to speak with a financial adviser.
Do you give financial advice?
Is there a minimum investment?
You are able to start a regular investment from as little as £50 per month. The minimum for a lump sum investment is £1,000.
I don’t have a printer. Are you able to send me an application form through the post?
Yes, of course we can. If you send us a quick message with your name and address, we will be very happy to send you a printed application form.
What is active management?
The T. Bailey Dynamic Fund is an actively managed fund, which means that our expert investment team (who all have their own money in the same fund) are making decisions, deciding the best places to invest as well as investments to avoid. They are aiming to achieve an objective of at least inflation plus 3% which is more relevant to an investor than trying to beat an index.
How can I keep track of my investment and get valuations
When we set up your account, we will also set you up with a login to our investor portal. For your security, we send password details through the post.
Using your portal, you will be able to log in at any time from a computer, tablet or phone and view your savings, top up your investment or sell. You are also welcome to telephone for a valuation or request one through email if you prefer.
Is this an ethical investment?
This is a hard question to answer because if you ask any two people what their definition of what an ethical investment is, you might get two completely different answers.
One person might say that it’s only ethical to invest in companies who only use green energy whilst another would say it’s fine to invest in a company who use fossil fuels but may be working hard to increase living standards for the communities that their workers live in.
Whilst T. Bailey do not have an ethical fund as such, we do have an environmental, social and governance (ESG) criteria that we apply to all investments within our funds.
In our investment themes section of our main website, we state the following:
Sustainability and ESG (Environment, Social & Governance) have gained much air time and column inches in the financial media recently. It is good that this trend has gathered a momentum that is likely to persist. As thematic investors, we have always adopted an awareness of sustainability issues starting before they became a trend. While we, as a fund of funds manager, do not have direct control over individual security selection, we invest with conviction investors who share the same ESG mantra as ourselves.
Is the Dynamic Fund a tracker?
No. The Dynamic Fund is not a tracker. A tracker is a type of fund that uses computers to mirror an index (such as the FTSE 100 or FTSE 250) by automatically buying and selling stocks so that it ‘owns’ its stocks in the same proportion as an index. A tracker will go up in value if an index rises but it will also lose value if the index falls.
As an example. If you were in a FTSE 250 Tracker on 24th July, one fifth of your investment would be in financials (such as banks) and just over 15% in Oil and Gas companies. A tracker holds these proportions because the index that it tracks holds them, not necessarily because they will help you to achieve your desired outcome.
The T. Bailey Dynamic Fund is an actively managed fund, which means that our expert investment team (who all have their own money in the same fund) are making decisions, deciding the best places to invest as well as investments to avoid. They are aiming to achieve an objective of at least inflation plus 3% over rolling three year periods which is much more useful to an investor than trying to beat an index.
Are my investments being managed by human beings?
Yes – we are human beings and you can see the faces of the people who are looking after them on ‘Our People’. Unlike cheap ‘tracker’ funds or ‘ETFs’ Your money will not be managed by a computer! Computers don’t care about the investor – Humans do!
Is it risky to invest with T. Bailey?
It’s important to remember that all forms of investment come with a certain amount of risk.
In order to achieve any growth at all, we have to take on some risk – this is the risk that investments could fall. If we don’t assume an acceptable amount of investment risk and simply leave our cash under the mattress, the risk is that the value of our money (what you can actually buy with it) is eroded due to inflation (prices going up over time).*
In order to maintain the current value of your money, we need to grow it by at least the same rate as inflation (currently around 2%). The Dynamic fund aims to increase the value of your money by an additional 3% above inflation over rolling three year periods.
We therefore have to take on some risk (as all stocks and shares can go down as well as up) but we use our experience and expertise as investors to minimise this risk.
*there are of course many other risks if you were to leave your money under the mattress such as the risk of there being a fire or the risk of theft!
Can I get my money back if I need it or am I tied in?
You can get your money back at any time by telling us either via letter, email or telephone. For your security, we will then send you a form to sign and the process takes 4 working days from the instruction to sell until the money is in your bank account.
It is important to remember that any investment into funds should be viewed as being for the longer term and the longer that you are able to stay invested, the more chance you have of achieving your aims.
Could I put together this portfolio myself?
It is unlikely that an individual has the necessary time or resources to research, construct and monitor a portfolio such as this.
How will you grow my money?
We aim to grow your money by using our expertise to invest in a portfolio of funds spread over many areas and in different assets. To use a common cliché – all your eggs are not in one basket.
We use our expertise to choose the most appropriate places and assets. We do this by using a number of investment themes to guide us.
An example of an investment theme might be ‘the ageing population’. Taking this theme as an example, we know that the populations of most of the developed world are getting older.
We therefore might assume that there will be a greater need to care for older people as they reach old age. This means Healthcare companies and care home providers could be industries that have a good chance of doing well. This theme might also take into account things such as leisure or tourism aimed at retired people.
In short, we grow your money by investing in a diverse portfolio that takes advantage of many of these different themes, and by using our expertise to make sure we are only choosing the best opportunities within these themes.
T. Bailey must make money somehow. How do you get paid?
We charge a small percentage of your investment. The current annual charge on your investment is 1.38%. That includes our fee of 0.6% as well as the costs of the underlying fund managers that we use in the fund. It is important to state that we aim to achieve the investment objective after these costs have been taken into account.
I’m already paying into an ISA – can I still save with T. Bailey?
Yes. If you are already using your ISA allowance elsewhere, you can still invest in exactly the same fund. You just need to fill out the correct application form so that we know that we are not to set your account up as an ISA. You can always transfer into an ISA at a later date.
Can I save with T. Bailey in an ISA?
Yes, you can invest up to £20,000 this tax year into the T. Bailey Dynamic fund using your ISA allowance.
An ISA is simply a tax wrapper that you are able to hold your investment within. Every adult in the UK is allowed to contribute up to £20,000 in the current tax year and hold this within their ISA allowance. This money can then grow tax free – there is no capital gains or income tax to pay when you sell.
The ISA allowance resets every year in April and you then get another year’s allowance. If you don’t use your whole allowance in a year, you lose the unused portion (i.e. it is not rolled over to the next tax year). Setting it up is easy, just fill in your details on the form and we set everything up for you.