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.

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