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.

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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
0.61 %
Risk Rating
2
3 Year Sharpe
1.61
3 Year Alpha
5.05
Yield
5.1 %
Benchmark
Not Benchmarked
The investment objective is to provide income with the potential for capital growth over the medium term. The fund invests 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.
Holding %
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 %
Region %
United States 26.85 %
United Kingdom 23.74 %
Eurozone 20.70 %
Asia - Developed 11.19 %
Japan 5.39 %
Australasia 5.22 %
Sector %
Real Estate 23.46 %
Financial Services 22.75 %
Technology 10.34 %
Industrials 8.43 %
Utilities 8.05 %
Consumer Cyclical 7.38 %
Healthcare 5.82 %
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
Vincent McEntegart
Joined 02/25/2014

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.

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.