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Bestinvest rating
KAMES ETHICAL CORPORATE BOND A

KAMES ETHICAL CORPORATE BOND A - Overview

Overview of KAMES ETHICAL CORPORATE BOND A

The fund adopts a dark green, strongly ethical approach to bond investing; a separate external ethical screen is initially employed and excludes the manager from investing in companies involved in areas such as nuclear power, animal welfare, gambling, tobacco, oppressive regimes and alcohol. The fund predominantly invests in sterling investment grade bonds, but may also utilise up to 10% in higher yielding bonds.
Bonds issued by major governments and companies will be more stable than those issued by emerging markets or smaller corporate issuers; in the event of an issuer experiencing financial difficulty, there may be a risk to some or all of the capital invested. Any historical or current yields quoted should not be considered reliable indicators of future performance.

  • Standard Initial Charge 4.50%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector £ Corporate Bond
Structure OEIC
Launched April, 2000
Size £296m
Yield 2.7%
Charging basis
Dividends paid 31 Mar, 30 Jun, 30 Sep, 31 Dec.

Charges

Standard initial charge 4.50%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.00%
Total expense ratio 1.10%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Investor Information Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

The fund adopts a dark green approach to ethical bond investing; a separate external ethical screen is initially employed and excludes the manager from investing in companies involved in areas such as nuclear power, animal welfare, gambling, tobacco, oppressive regimes and alcohol. This can limit investment choice and could hinder returns.

Portfolio

Allocation Proportion(%)
Equity 0
High yield bonds 8
Quality bonds 88
Property 0
Commodities 0
Hedge 0
Fund cash 4
Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 0
Pacific 0
Other Equity 0
Allocation Proportion(%)
Large Caps 0
Mid Caps 0
Small Caps 0

View all performance data for this fund

Investment process

The aim is to invest in bonds that have been issued by socially aware companies. The fund will invest over 80% of the portfolio in investment grade bonds with up to 10% in non investment grade high yield Bonds. The objective is to maximise total return by investing in sterling denominated bonds that meet the ethical criteria. Sources of alpha include duration, asset allocation, yield curve positioning, stock selection, rating and sector preferences.

Live feed

Bid price(inc) (4.37p) 110.87p
Accum units 191.62p
Fund commentary 27/02/12
Fund data updated on 19/12/14

* This fund is part of our annual bonus scheme to which conditions apply. If you qualify for the bonus it will be paid on any holding of this fund that you have in your Investment, ISA or SIPP accounts.

Asset allocation

Allocation Proportion(%)
Equity 0
High yield bonds 8
Quality bonds 88
Property 0
Commodities 0
Hedge 0
Fund cash 4

Equity Geographic

Allocation Proportion(%)
UK 0
Europe 0
North America 0
Japan 0
Pacific 0
Other Equity 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 0
Mid Caps 0
Small Caps 0

Top 10 holdings

As at: 30/09/2014
1.64% Legal & General Gp 10% 23/7/2041
1.56% AA Bond Co Ltd 6.269% 31/07/25
1.55% Dignity Finance 8.151% 31/12/2030
1.54% Municipality Finance Plc 1.125% 07/12/17
1.48% Investec Bank Plc 9.625% 17/02/22
1.45% White City Property 5.1202% 17/04/35
1.41% Bl Superstrs Fin 5.27% 4/10/30
1.36% Kreditans Fur Wie 5.5% 07/12/2015
1.36% Land Sec Capital Markets 4.875% 29/09/25
1.32% Cpuk Finance Ltd 7.239% 28/02/2024
Source: Trustnet

Sector breakdown

Collateralised 31%
Other Financial 24%
Banks 11%
Utilities 11%
Industrials 8%
Sub-Sovereign 6%
Money Market 4%
Telecom, Media & Technology 4%
Index Linked Non Government 2%

Portfolio details

The top 10 holdings make up to 30% of assets.

Constraints

No minimum sector diversification limits. Maximum of 20% in cash. 10% in High Yield bonds and at least 80% in sterling investment grade corporate bonds.

Average monthly relative returns Bestinvest MRI
09/10 10/11 11/12 12/13 13/14   3 years 5 years Career 3 years 5 years Career
0.05% 0.18% -0.41% -0.10% -0.16%   -0.22% -0.09% -0.06% 5.50% 43.60% 55.20%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Iain Buckle / Euan Mcneil

Manager. Buckle joined AEGON Asset Management in 2000 and is a member of the Portfolio Construction team. He spent his first three years on the Rates team, where he analysed the gilt and index-linked market. Previously Buckle was a member of Baillie Gifford’s fixed income team. He has an MA (Hons) in Economics from Heriot-Watt University, is a CFA Institute charterholder. McNeil joined AEGON in 2003 from Britannic Asset Management, where he spent the previous two years on the corporate bond desk. Prior to joining Britannic, he was a portfolio manager covering Far East equities at Blairlogie. McNeil has an honours degree in economics and French from the University of Strathclyde, and an MSc in investment analysis from the University of Stirling.

Track record

Iain Buckle / Euan Mcneil has 5.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.06%. During the worst period of relative performance (from November 2011 - August 2014) there was a decline of 8% relative to the index. The worst absolute loss has been 5%.

Periods of worst performance
Absolute -5% (April 2013 - June 2013)
Relative -8% (November 2011 - August 2014)

Other funds managed

  Start Date
KAMES ETHICAL CORPORATE BOND AOct 2009

Sector record since October 2009 (5 yrs)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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