T.Bailey to hold commodities and property in new cautious fund

T.Bailey has set the asset allocation for its newly-launched Defensive Cautious Managed fund, with the vehicle set to hold 10% in both commodities and property.

Managed by Elliot Farley, the fund is typically going to a have a 40% fixed income weighting, 25% equities, 10% commodities, 10% property, 10% cash and 5% absolute return.

Fixed income holdings include Henderson Strategic Bond, Fidelity Strategic Bond and Thames River World Government Bond.

The equity portion features CF Walker Crips Equity Income, Veritas Global Income - as well as HSBC Pacific ETF, iShares MSCI Brazil ETF and iShares FTSE 250 ETF. Commodity positions include ETFS Gold.

Farley is yet to introduce the fund's property and absolute return holdings, but expects to be 90% invested by the end of the month.

T.Bailey already runs the £36m Cautious Managed fund, which has returned 15.8% over one year to 12 July 2010, on par with the sector.

Investment is available at a minimum of £1,000 for both income and accumulation share classes, with a 1.5% AMC. The fund sits in the IMA Cautious Managed sector.