Kames Diversified Monthly Income Fund GBP B Inc

Mixed Asset 41-60% Equity

Rated Fund 2018-20. Backs a wide range of assets for a 5% annual yield      

Kames Diversified Monthly Income aims to provide a high level of income, paid monthly, with potential for capital growth by investing in a wide range of yield-generating investments. It consistently ranks in the first quartile of its peer group. The level of diversification it offers sets it apart: the portfolio has almost 200 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 4.7%, as a result of strong capital performance pushing the yield lower. It has very reasonable ongoing charges of 0.59%.

The fund has been run since its launch in 2014 by Vincent McEntegart. Jacob Vijverberg joined him as co-manager in 2017. The pair are part of Kames’ multi-asset team and are responsible for asset allocation. Stock selection is outsourced to specialist teams within Kames. When deciding where to allocate assets, the managers aim to invest in a range of lowly correlated investments (those that move in different directions), with a view to achieving lower volatility relative to equity markets.

With attractive and dependable levels of income remaining highly soughtafter, 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. They currently have a preference for high-yield bonds, financial company shares, real estate investment trusts and renewable energy investment trusts.

Narrative and ratings content all as of 01 January 2020.

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
0.59 %
Risk Rating
5
3 Year Sharpe
0.05
3 Year Alpha
-3.73
Yield
5.3 %
Benchmark
IA Mixed 20-60 Peer Group GBP
The investment objective is to generate income with a target yield of approximately 5% per annum, with the potential for capital growth over the medium term (being any 5 year period). By investing in the Fund, capital is at risk. There is no guarantee that the Fund will generate this, or any other level of income or returns. At least 80% of the Fund will usually consist of equities, corporate bonds and government and public securities. The typical level of investment in equities will be between 20-60% of the Fund’s value.
Holding %
United States Treasury Bonds 3.38% 3.38 %
United States Treasury Bonds 4.38% 3.29 %
United States Treasury Notes 2.13% 1.89 %
United States Treasury Notes 1.13% 1.72 %
Zurich Insurance Group AG 1.68 %
Renewables Infrastructure Grp 1.65 %
Greencoat UK Wind 1.65 %
Broadcom Inc 1.48 %
Phoenix Group Holdings PLC 1.35 %
Pfizer Inc 1.27 %
Region %
Eurozone 23.22 %
United States 22.66 %
Asia - Developed 16.49 %
United Kingdom 14.31 %
Japan 11.49 %
Europe - ex Euro 5.42 %
Australasia 5.14 %
Sector %
Real Estate 23.41 %
Financial Services 20.57 %
Industrials 15.01 %
Utilities 9.88 %
Healthcare 9.83 %
Technology 9.52 %
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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