The Diversified Income Fund seeks to offer potential for capital growth over the medium term. The fund draws on the firm’s multi-asset capabilities by offering a diversified portfolio of bonds, equities and alternatives.
Vincent McEntegart from Kames Capital’s multi-asset team will manage the fund. The team uses an active asset allocation strategy across five assets – investment grade bonds, high yield bonds, global equity income, UK equity income and alternatives.
The fund will distribute income monthly and will have an initial allocation of 21% to high yield bonds, 19% to investment grade bonds, 23% to global equity income, 14% to UK equity income, 22% in alternatives and 1% in cash.
The fund is particularly aimed at investors who are now reaching retirement and beginning to look how to provide themselves with an income.
“With many of the post-war baby boomers now approaching or having reached retirement coupled with the increase in life expectancy there has never been a greater need for a diversified income approach to supplement people’s retirement. This fund pulls together our key asset classes to create a solution for those seeking a competitive income either now or in the future,” chief executive Martin Davis said.
The fund was originally designed for the firm’s sister company Aegon UK’s retirement proposition, and following positive market feedback Kames decided to make the fund available to the wider market.
