T.Bailey merges UK Best Ideas into Growth fund

T.Bailey is planning to merge its £1.7m UK Best Ideas fund into its £158m flagship Growth portfolio.

UK Best Ideas unit holders are due to receive the proposal document on Friday.

In the letter to investors, T.Bailey CEO Peter Letley writes: "Investor demand for this product has been very low and as at 11 February 2010 the discontinuing fund has assets of only approximately £1.7m and has only 92 unitholders.

"Managing such a small fund is inefficient largely due to the greater impact of costs and it is therefore our intention, with regret, to close the fund."

Head of sales, marketing and communications Philippa Gee says the £1.7m fund never gained traction and has been dwarfed by the Growth vehicle.

"This is about positioning the business going forward, coming out with funds which fit investors' requirements and where we can deliver outperformance," she says.

UK Best Ideas was launched in October 2007 and aimed to outperform the FTSE All Share Index on a total return basis by 1% over three year rolling periods.

Its Growth fund launched in December 1999 with the objective of outperforming the IMA Global Growth sector over three years.

The AMC for both funds is 1.5%.

UK Best Ideas returned 23.6% over one year to 8 February, compared to an IMA UK All Companies sector average of 28.8%.

Meanwhile, Growth returned 28.8%, -3.2% and 34.5% over one, three and five years to 8 February respectively, compared to IMA Global Growth sector averages of 24.8%, -4.8% and 30.2%.