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T.Bailey – A

Profile.

T. Bailey

3

Over ten years ago, Nicholas Forman Hardy and his relativesweren’t impressed by what private stockbrokers had to offer.Where, they wondered, was the attentive and knowledgeableservice? And where were the attractive returns?

The family thought they could do better. And, as it turned out, they could. Much better. Initially only for themselves:managing their affairs by selecting innovative investmentprofessionals – with great track records – to run their portfolioson a multi-manager basis.

But friends then expressed an eagerness to get involved.Which, of course, is a polite way of saying they wanted a piece of the action. So, inevitably, T. Bailey ceased to be afamily-only concern. And so the Nottingham-based investmentboutique specialising in fund of funds was born.

To this day, the family, our fund managers, our staff and our investors continue to have their money invested by the same people in the same T. Bailey funds. And reap thesame rewards.

In other words, we practice what we preach here at T. Bailey.Having our fortunes bound to those of our investors focusesour minds wonderfully.

It was a family decision.

As a family, we have a

150-year business

heritage. Unable to find

the ideal investment

house ten years ago, we

created our own. Other

investors soon beat a

path to our door.

Nicholas Forman Hardy. Chairman

T. Bailey

Yes, the way we work is difficult to categorise.

We’re not ones to embrace what’s fashionable simply becauseit’s new. Nor to abandon sound practices because they’ve been around for years and years.

Our eager-to-please style of service may seem like ananachronism to some people; but not to us. We believe incustomer satisfaction. One thing we won’t be embracing,however, is anything rash or unproven. The world doesn’t need yet another reckless investment house to be cavalier or just plain stupid with investors’ life savings.

So we cherry-pick. We use the best of what’s new andwhat’s well-established.

And we make sure we recruit the finest people available andcombine that brilliant human resource with state-of-the-artresearch and investment techniques.

Furthermore, our multi-manager approach gives our team the chance to shine by granting them greater freedom and the opportunity to respond to the market more quickly.

With all the right elements in place, we find good resultstend to follow naturally.

T. Bailey

A traditional, cutting edge

sort of business.

5

T. Bailey is still privately

owned, with an ethos

that independence is the

key to successful and

prudent investment.

And we enjoy the

freedom that comes

from investing in funds.

Philippa Gee. Head of Sales, Marketing and Communications

T. Bailey

Our preferred strategy is investing in a portfolio of funds, ratherthan investing directly in shares, bonds or other securities.

We believe this reduces risk while producing superior long-term returns. Which, of course, is the dream scenario for anyinvestor. It also gives us flexibility and freedom.

In a more traditional model, all of a fund’s money is controlledby only one or two managers. The managers choose whichstocks to invest in; but their scope is usually limited to a fairlyconstrained area or asset class. They can also be prone toinvest in a particular style – their personal one or that of theircompany – which may not be universally appropriate.

But T. Bailey’s multi-manager funds allow our fund managersto put money into a diverse range of asset classes and funds.Eggs, therefore, can reside in a greater number of baskets. And the most apposite management style, as well as the best funds, can be selected.

Fund of funds v. manager of managers.We’ve expressed our preference for a multi-manager approachto investing, but why did we choose fund of funds rather thanmanager of managers?

Well, the latter – often run by institutional investment houses –can be unwieldy because of the contracts that have to be putin place. Given the volatility of the market, we’d much preferthe ability to act rapidly and decisively. Fund of funds gives usthat ability.

Fund of funds have the added advantage of giving us access to certain investments that are unavailable to retail investors.With a wider choice at our disposal than a direct client wouldhave. And we can make investments more cheaply, too.

These general advantages of fund of funds should beconsidered in conjunction with T. Bailey’s rather more specificadvantage: its skilled investment team. Ever-vigilant, our teamaims to calculate the optimum combination of funds thatshould perform best together.

T. BaileyT. Bailey

76

Why do we believe in fund of funds?

Fund managers can

have narrow fields of

specialisation which

can lead to higher risk.

But with fund of funds,

we can spread risk and

invest in diverse classes

of assets.

Elliot Farley. Assistant Fund Manager

Our origins alone would set us apart. When the Forman Hardyfamily created the perfect investment house for its ownpurposes because it couldn’t find one that met its exactingstandards, that was unusual enough.

So what is it that we’ve actually created? A best-of-both-worldscompany. One that exploits the latest technological advances tomaximise our returns. And, at the same time, one exercisingfinancial prudence and providing a personal service of a qualitythat is incredibly rare these days. Some might even regard itas a service revival; albeit one that some in the industry seemdetermined not to get caught up in. A bandwagon that few are jumping on.

Our boutique size makes us agile; far quicker at makingdecisions and taking action than lumbering corporate beastswith elaborate hierarchies.

Being located in Nottingham helps to create somegeographical distance between us and most other fundmanagement companies; and although we’re in London each week, this moderate isolation helps to maintain ourindependence and impartiality.

So our investment managers and researchers get to choosefunds without being obliged to show any favouritism. This far-from-common situation affords them the ability to makedecisions based on their observations and judgement alone;not for unrelated, irrelevant reasons.

One way to take advantage of such autonomy is through ourasset allocation process. We have the very latest technology to ensure this process is as accurate as possible. Speedy, too.We’ve been quick off the mark at taking advantage of anumber of promising new assets that have recently becomeavailable in the UK.

And, as we’ve already mentioned, our directors and staff (with the company’s blessing and encouragement) activelyinvest in our funds, thereby intertwining our interests withthose of our clients. It’s an unorthodox corporate practice. But it creates a culture of empathy and responsibility.

Volatility is unnerving in the financial market, and it can be just as alarming in an investment house. If there are frequentarrivals and departures of personnel, it can feel destabilisingand disruptive to the continuity of the service to you.

Happily, though, T. Bailey’s excellent relationship with itsemployees has resulted in an exceptionally low rate of staffturnover. Careful recruitment has enabled us to employ giftedcandidates committed for the long-term.

Loyalty is the norm here; not the exception. What betterexample of that could there be than Jason Britton, our chiefinvestment officer, who’s been with us from day one?

98

T. BaileyT. Bailey

What makes T. Bailey, T. Bailey?

Our owners and fund

managers, the masters

of funds, invest their own

money in exactly the same

T. Bailey funds as our clients.

We like to benefit from our

expertise too.

Jason Britton. Fund Manager and Chief Investment Officer

We could wax lyrical about our service – in fact we just have –but that wouldn’t be terribly convincing without impressivereturns to back it up.

We have a range of funds to suit different investment needsand appetites for risk, recognising that one size certainly doesnot fit all.

For up to date details on the performance of our funds andproof of why we think our returns are impressive, go towww.tbailey.co.uk

Given the Forman Hardy family’s ownership of T. Bailey, thebusiness’s investment in talent and resources is assured at a time when many others are economising on essentials like these. The calibre of our recent recruits highlights ourcommitment to quality. Also, we believe we have a very good compliance arm that makes sure we do not mislead or take excessive risk.

We’re also embarking on a programme of expanding our range of funds, and attracting new investors.

So we have great confidence that our success and ourcustomers’ prosperity will continue unabated in the future.

1110

The proof of the pudding

T. BaileyT. Bailey

The last word goes to

our chairman. Which

seems only fair.

“These are very exciting times for T. Bailey. When manyfinancial services companies are cutting back, we are investingin the business so that our clients can look forward to an evenhigher level of service that combines traditional values withthe benefits of a thoroughly modern approach.

We are constantly striving to improve our service by adding to the range of options available to T. Bailey investors, as well as building the best possible team with the aim of producingsuperior returns whatever the market conditions.

So whether you are a long-standing client or a newcomer tothe T. Bailey way, we look forward to a long and prosperouspartnership.”

Nicholas Forman HardyChairman

We invest in funds

more cheaply than

individuals can do

directly. Enjoy an

independent, boutique

approach that has

benefited both our

clients and ourselves.

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6 4 St. James’s Street, N

ottingham

NG

1 6FJ, United Kin

gdom.

T: 0115

988 82

00 F: 0

115 9

88 822

2 W

: ww

w.tbailey.co.uk

Registered address as above. R

egistered in England and Wales N

o. 3720372.A

uthorised an

d regulated by the Fin

ancial Services A

uthority N

o. 190291.

T. Baile

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64 St. James’s Street

Nottingham

NG

1 6FJ

T: 0115 988

8200

F: 0115 98

8 8222

info@

tbailey.co.uk

ww

w.tbailey.co.uk

Please note: calls m

ay be recorded.