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
|US 10 Year Note (CBT) Sept19||3.37 %|
|Short Gilt Future Sept19||3.10 %|
|United States Treasury Notes 1.13%||1.85 %|
|United States Treasury Notes 2.63%||1.79 %|
|Greencoat UK Wind||1.66 %|
|Broadcom Inc||1.59 %|
|Taiwan Semiconductor Manufacturing Co Ltd ADR||1.51 %|
|US 5 Year Note (CBT) Sept19||1.50 %|
|Infratil Ltd||1.09 %|
|Allianz SE||1.05 %|
|United States||25.99 %|
|Asia - Developed||15.49 %|
|United Kingdom||12.87 %|
|Real Estate||19.26 %|
|Financial Services||18.22 %|
|Consumer Cyclical||5.99 %|
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 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.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
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.