Kames Diversified Monthly Income Fund GBP B Inc
Mixed Asset 0-40% Equity
New for 2018. Backs a wide range of assets for a 5 per cent 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. What sets it apart from peers is that it is very well-diversified across asset classes, investing in investment grade and high yield bonds, UK and global equities, listed property and specialist income. It targets a yield of 5 per cent from income and a total annual return of 7 to 8 per cent over the medium term. It currently yields 4.9 per cent and has ongoing charges of 0.61 per cent. The fund has been run since its launch in 2014 by Vincent McEntegart, with Jacob Vijverberg joining him in 2017. The pair 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. The portfolio has more than 200 holdings. McEntegart says that drivers of performance during 2017 were equity income, real estate investment trusts and bank credit. He has been increasing allocations to emerging markets and infrastructure. He believes volatility will return to more normal levels in 2018, bringing with it the opportunity to add value through active asset allocation and stock selection.
Narrative and ratings content all as of 01 January 2018.See all Money Observer rated funds
|Long Gilt Future Dec 2018||5.54 %|
|Euro BOBL Future Sept18||3.99 %|
|US 10 Year Note (CBT) Dec18||3.44 %|
|Euro BUND Future Sept18||2.16 %|
|Phoenix Group Holdings||1.92 %|
|Euro-Btp Future Sept 2018||1.89 %|
|Taiwan Semiconductor Manufacturing Co Ltd ADR||1.70 %|
|Greencoat UK Wind||1.67 %|
|United States Treasury Notes 1%||1.45 %|
|United States Treasury Notes 2.63%||1.45 %|
|United States||26.85 %|
|United Kingdom||23.74 %|
|Asia - Developed||11.19 %|
|Real Estate||23.46 %|
|Financial Services||22.75 %|
|Consumer Cyclical||7.38 %|
Vincent McEntegart is an investment manager in our Multi-asset team. He joined Kames Capital 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.
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