KAMES ETH­I­CAL CAU­TIOUS MAN­AGED (B7V2CD0)

Shares - - UNDER THE BONNET -

The eth­i­cal and so­cially re­spon­si­ble end of the in­vest­ment uni­verse has bal­looned in re­cent years as in­vestors em­brace the wider ethos and, cru­cially, have be­gun to recog­nise this does not mean poorer per­for­mance. In­vest­ment tar­gets come from a di­verse spec­trum of the UK stock mar­ket and fur­ther afield (about 10% to 12% of fund is in­vested in North Amer­ica and Europe), such as en­gi­neer­ing, tech­nol­ogy and in­sur­ance, where it has a lit­tle more than 2% of its funds in Pru­den­tial (PRU).

Strict rules de­ter­mine that no more than 60% of its money is tied up in eq­ui­ties but this ar­guably plays to its real strengths, which ac­cord­ing to Morn­ingstar anal­y­sis, is in fixed in­come as­sets, or bonds.

This hints at the in­vest­ment strat­egy’s ‘cau­tious’ ap­proach, which will no doubt ap­peal to many in­vestors either ap­proach­ing, or in, re­tire­ment and are look­ing for a solid in­come.

AJ Bell ex­perts give Kames Eth­i­cal Cau­tious credit for the breadth and depth of its man­age­ment team, al­though the over­all per­for­mance ver­sus its com­bined FTSE All Share and iBoxx Ster­ling Non-Gilts In­dex is mixed.

Fairly low-cost (in­clud­ing a 0.75% an­nual man­age­ment fee and 0.79% on­go­ing charges) and with a 2% in­come yield, Kames ap­pears to be a solid if un­spec­tac­u­lar eth­i­cal in­come op­tion. (SF)

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