Kames Diversified Monthly Income Fund GBP B Inc

Mixed Asset 41-60% Equity

Rated Fund 2018-19. Backs a wide range of assets for a 5% yield

Another monthly income-payer, Kames Diversified Monthly Income aims to provide a high level of income with the potential for capital growth by investing in a wide range of yield-generating investments.

Although its performance has sometimes lagged, the level of diversification it offers sets it apart from peers. The portfolio has almost 180 holdings and invests across investment grade and high yield bonds, UK and global equities, listed property and specialist income.

It targets a yield of 5% from income and a total annual return of 7-8% over the medium term. It currently yields 5.4% and has very reasonable ongoing charges of 0.61%.

The fund has been run since its launch in 2014 by Vincent McEntegart, with Jacob Vijverberg joining him in 2017. The pair are part of from Kames’ multi-asset team and are responsible for the asset allocation with stock selection being outsourced to specialist teams within Kames.

In deciding where to allocate assets, the managers assess economies, markets and investment opportunities. They aim to invest in a range of lowly correlated investments (those that move in different directions) with a view to achieving lower volatility than equity markets.

With attractive and dependable levels of income remaining ‘highly sought after’, and political and economic uncertainty bringing both risk and opportunity, they put faith in running a flexible multi-asset fund and managing risk through dynamic asset allocation and high conviction stock selection.

One area they particularly like just now is financials, such as European banks and insurance companies, and US and Asian real estate investment trusts.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Kames Diversified Monthly Income Fund GBP B Inc
Manager
Kames Capital PLC
Type
Open Ended Investment Company
ISIN
GB00BJFLR106
Sector
Mixed Investment 20-60% Shares
Launched
25/02/2014
OCF
0.6 %
Risk Rating
3
3 Year Sharpe
1.23
3 Year Alpha
3.09
Yield
4.8 %
Benchmark
Not Benchmarked
The investment objective is to provide income with the potential for capital growth over the medium term. To invest mainly in a diversified portfolio of equities, bonds and derivatives denominated in any currency. Assets will be chosen based on global economic trends and investment opportunities. As a result, at any one time the Fund may be diversified across asset classes, sectors, currencies or countries or may be more focused. Equities will be limited to a maximum of 80% of the Fund’s value at all times. The Fund may invest in assets denominated in a currency other than Sterling. The currency risk of investing in such assets may or may not be hedged back to Sterling, depending on whether currency risk is a desired element of the investment decision.
Holding %
US 10 Year Note (CBT) Sept19 3.60 %
Long Gilt Future Sep19 3.34 %
United States Treasury Notes 1.13% 1.98 %
United States Treasury Notes 2.63% 1.91 %
Greencoat UK Wind 1.79 %
US 5 Year Note (CBT) Sept19 1.61 %
Broadcom Inc 1.39 %
Infratil Ltd 1.37 %
Taiwan Semiconductor Manufacturing Co Ltd ADR 1.32 %
ING Groep NV 1.26 %
Region %
United States 24.61 %
Eurozone 21.01 %
Asia - Developed 15.51 %
United Kingdom 11.95 %
Japan 10.79 %
Australasia 8.22 %
Asia - Emerging 5.98 %
Sector %
Industrials 19.32 %
Financial Services 19.08 %
Real Estate 18.44 %
Technology 9.74 %
Utilities 7.64 %
Healthcare 7.00 %
Consumer Cyclical 6.07 %
Name
Kames Capital PLC
Address
EH12 9SA, Edinburgh, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Jacob Vijverberg
Joined 10/31/2017

Jacob Vijverberg joined the team in 2008. He is responsible for strategic asset allocation, macro-economic views and income strategies. He previously worked for ABN-AMRO Bank as a Quantitative Risk Analyst with a focus on risk modelling. Jacob holds an MSc in Experimental Physics from Utrecht University, the Netherland and is a CFA charterholder

Vincent McEntegart
Joined 02/25/2014

Vincent McEntegart is an investment manager in our Multi-asset team. He joined us in 2013 from Goodhart Partners (an MBO of the multi-manager business of WestLB Mellon Asset Management) where he was a partner responsible for client relationships and new business. Prior to this, Vincent was Co-Head of Investment Manager Research at Hymans Robertson and a senior member of the investment consulting practice. Vincent has also worked for Alexander Clay Consulting (now part of Aon) and Clerical Medical Investment Group. He has a BSc in Mathematical Sciences from the University of Strathclyde and a Diploma in Actuarial Techniques from the Institute of Actuaries.

Data provided by Morningstar.

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You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.