This blog is designed to record the investment journey of a UK based small investor. I hope to make a modest contribution to the collective wealth of investing knowledge made freely available to ordinary people. I am the author of four books [see sidebar and books tab]
Kames is the former
asset management arm of Scottish Equitable, which was bought by Dutch giant
Aegon and renamed Kames six years ago. It holds funds totalling £45bn.
Their monthly income
fund was launched in February 2014 and over the past year it has provided a
return for investors of 10.1% building
on the 11% for 2016 and has produced an annualised return of 8.2% p.a. since
launch. Lead manager is Vincent McEntegart.
The fund targets income
of 5% from a diverse range of assets which include bonds and fixed interest
(40%), UK & global equities (26%), property (14%) and specialist (18%). No
single holding exceeds 2% of the portfolio. Some top 10 include Greencoat UK
Wind, HICL Infrastructure, Tritax Big Box and Imperial Brands.
Ongoing charges are
Over the past 3 yrs the
fund is ranked 14th from 170 funds listed in the IA Mixed Investment 20 - 60% shares sector. McEntegart has a
reputation as a 'steady Eddie' manager who prefers a relatively cautious
approach to generating income with a correspondingly low price volatility. This was one of the
reasons for adding this fund to my income portfolio.
Performance since launch (click to enlarge)
As it is a fund which
would attract a platform charge of 0.25% with AJ Bell, I have added it to my
Halifax Share Dealing ISA which is fixed fee and therefore there will be no
additional platform charges. The fund was purchased in December at the price of
110p. Distributions are made at the end of each month.
I will now include this fund in my demonstration income portfolio.
As ever, this article
is merely a record of my personal investment decisions and should not be
regarded as an endorsement or recommendation -always DYOR!