Kames Capital cuts fees on Diversified Income fund

Kames Capital has cut the fees on its leading income fund in a bid to attract more pension investors. Daniel Flynn reports

Kames Capital has reduced the annual management charge (AMC) on its Diversified Income fund as it looks to attract pension investors.

From 1 November, the AMC on the fund’s B share class will be reduced from 0.65% to 0.55%. The new total expense ratio (TER) will be 0.61%.

Kames director of wholesale business Steve Kenny said: “With the recent changes announced by the government capping fees on pension pots to 0.75% from April this year, we believe this move makes the fund extremely attractive to pension investors or anyone seeking an attractive income.

“Not only are the charges now highly competitive, it also has excellent performance and should now be able to capture the market share it deserves.”

Launched in February 2014, the £286m Kames Diversified Income fund is managed by Vincent McEntegart, aimed at both institutional and retail investors.

It looks to achieve an attractive sustainable level of income with the potential for capital growth over the medium term, investing in a diversified portfolio of bonds, equities and alternatives.

The fund has returned 8.2% over the past year, according to FE Trustnet, against a 2.1% average loss from its peers in the IA Specialist sector.