Kames Global Sustainable Equity B

A global sustainable equity fund, with a growth bias.

  • 2030.73p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • -
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.92%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.00%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 25 May 2020

The fund aims to maximise total return (income plus capital) by investing in a diversified portfolio of global equities, which meets the fund’s predefined Environmental, Social, Governance, and fundamental investment criteria. The portfolio is fairly concentrated, with the manager screening and ranking all stocks based on their sustainability criteria. Stocks are listed as either sustainable leaders or improvers, and the manager has a bias towards improvers for potential alpha generation.

Fund summary

Sector Global
Structure OFFSHORE FUND
Launched April, 2016
Size £127m
Yield 0.00%
Charging basis Income
Dividends paid Acc units only

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.92%

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Investment process

The five stage investment process seeks to identify undiscovered sustainability improvement and undiscovered growth from a global universe of approximately 4000 stocks. The five stages: 1) Kames global equity screen - looking for financially strong companies with strong cash flows and technical advantages, 2) Product exclusion screen - tobacco, gambling, weapons, nuclear, pornography, 3) Sustainability analysis - products, practices and improvement resulting in a rank of leaders, improvers or laggards, 4) Fundamental Valuation Technical analysis of Leaders and Improvers, 5) Portfolio construction - concentrated 35-45 stocks, without explicit regional or country limits and an aim to maintain a high level of active share (+90%) and stock specific risk (>70%).

This fund has performed well since it launched in 2016. It is a fairly concentrated portfolio of global equities, which the manager has screened and ranked based on their sustainability criteria. The team have a clear bias towards growth and sustainable improvers for alpha generation. These companies are set annual KPIs to ensure they actually are improving in terms of ESG targets. Kames is an experienced fund house in terms of ethical and sustainable investing, with an established ESG team monitoring all stocks that are included in the portfolio. We would describe this fund as light to mid green in terms of its investment restrictions.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 -0.11%
  • 17/18 0.83%
  • 18/19 -0.87%
  • 19/20 0.16%

Bestinvest MRI

  • 3 years 0.04%
  • 5 years 0.00%
  • Career -0.05%
  • 3 years 61.80%
  • 5 years 0.00%
  • Career 58.70%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Craig Bonthron / Neil Goddin

Bonthron is an investment manager in the Kames Equities team, responsible for co-managing global equities portfolios. He joined Kames in 2014 from SWIP, where he was investment director in global equities and was the joint fund manager of the SWIP Global Sustainable Equity Fund and the SWIP Global Islamic Equity Fund. In addition, he also has analysis responsibilities for the tech, energy and utility sectors. Prior to SWIP, he was a portfolio manager at Kleinwort Benson Investors, a member of the global environmental equity team, and co-manager of the KBI Global Water Fund. Bonthron has a 1st Class honours degree in Building Surveying and a MSc with Distinction in Business Information Technology Systems from Strathclyde Business School. Prior to joining Kames, Neil Goddin was Head of Investment Risk at LV Asset Management and before that, he worked for WestLB Mellon Asset Management and Deutsche Asset Management in various risk-management roles. Goddin joined Kames in September 2012, where he took the responsibility for developing Kames’ screening and portfolio construction capabilities as Head of the Quant Equity Research team. Shortly after joining in 2012, he became involved in the management of the Kames Global Equity Fund and assisted in designing its new investment approach. He was then named co-manager of the Fund in October 2014 to reflect his participation and contribution since 2012. Goddin also co-manages the Kames Global Sustainable Equity Fund (launched April 2016) and the Kames Global Equity Market Neutral Fund (launched June 2016). He has 19 years’ industry experience and is a Certified Risk Manager by the Global Association of Risk Professionals.

Track record

Craig Bonthron / Neil Goddin has 7.2 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.05%. During the worst period of relative performance (from August 2018 - October 2019) there was a decline of 16% relative to the index. The worst absolute loss has been 22%.

Periods of worst performance

Absolute -22.00% (August 2018 - March 2020)
Relative -16.00% (August 2018 - October 2019)

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.

Allocation

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Portfolio

Concentrated portfolio of 35-45 stocks. 90% + active share. 3-6% tracking error.

Constraints

Excludes: weapons, tobacco, nuclear, gambling, pornography, animal welfare, genetic modification (agri). No hedging.

Key Investor Information

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