KAMES ETHICAL CAUTIOUS MANAGED (B7V2CD0)
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)