Fact sheet: Kames Property Income

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
PROPERTY
Sector
UT Property
Fund type
OEIC
Primary aim
INCOME
Why Money Observer Rates Kames Property Income

FE Risk Score: 53 Rated Fund 2016-2018. Boosts yield from secondary properties

Launched in 2014, this is one of the few open-ended funds to focus on generating a high income as well as capital growth. It targets a yield of 5.5 per cent and pays income monthly.

Run by David Wise and Richard Peacock, the fund aims to have up to 80 per cent in direct properties and 20 per cent in property shares and cash to provide liquidity. Unlike some property funds, this liquidity meant it was able to remain open after the EU referendum.

Of the direct property content, around 30 per cent is invested in ムcore' property assets of ᆪ5-ᆪ20 million ヨ these are typically easier to buy and sell, have longer leases, higher-quality tenants, and/or are located in better areas.

The remainder is subject to the managers' active value strategy, which includes seeking to exploit the wide yield gap between prime and secondary property. Secondary property is defined as assets outside London and the South East, higher-risk buildings or those with higher voids, capital intensity or weaker covenants. The managers assess the potential risks of each property.

They also seek to enhance the yield through active management initiatives such as change of use, refurbishments, lease extensions and new lettings. At the end of 2017 the ᆪ550 million fund held 48 physical properties, with more than half of assets in the North West, North East and Yorkshire/Humberside.

Whitechurch Securities has used the fund as a complement to much larger commercial property funds since July 2015.<\p>

3 Year Performance
Fund Performance18.6%
Average of Rated Funds Group29.4%
Sector Performance14.7%
Fund information
Fund name
Kames Property Income B Gr Acc
Fund manager company
Kames Capital plc
Fund type
OEIC
Fund managers
  • Richard Peacocksince 01/01/2017
  • David Wisesince 28/03/2014
Accolades
Fund objective
The investment objective is to carry on Property Investment Business and to manage cash raised from investors for investment in the Property Investment Business. In doing so, the Kames Property Income Fund aims to provide income with potential for capital growth through investment mainly in commercial property.
Benchmark
  • IA UK Direct Property
Investment style
None
Investment method
Physical
Quick stats
1 Year return
6.5%
1 Year rank in sector
23/48
Sector
UT Property
Yield
5.2%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.87%
Fund size
£668m (£499m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
39
Top in this sector
Fund name1 Year
Aberdeen Property Share13.6%
Aberdeen European Prop Share12.9%
Scot Wid HIFML UK Property12%
The Charities Property11.3%
Mayfair Capital Prp I Tfr Chrts10.9%
...more in UT Property

Performance snapshot

Holdings snapshot

  • Money Market21.7%
    North West UK16.3%
    South East UK13.1%
    Yorkshire & Humberside9.8%
    Scotland8.5%
  • Offices - Property31.5%
    Net Current Assets21.7%
    Retail18.1%
    Leisure9.7%
    Equities6.5%
  • Property71.8%
    Money Market21.7%
    International Equities6.5%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund0.5%1.6%3.1%6.5%18.6%-
Sector1.6%2.8%1.8%5%14.7%30.2%
Rank within sector26 / 4629 / 4923 / 4923 / 4822 / 45-
Quartile3rd3rd2nd2nd2nd
Calendar performance
 YTD - 20182017201620152014
Fund1.6%7%4%9.3%-
Sector0.7%5.9%5%5.4%10.7%
Rank within sector21 / 4921 / 4721 / 4617 / 45-
Quartile2nd2nd2nd2nd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
7.6
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
-0.19
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.34
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
7.89
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
9.98
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.07
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.02
Price movement
52 week high137.76
52 week low128.97
Current bid price137.38
Current offer price137.38
Current mid price-
Region
1Money Market21.69%
2North West UK16.34%
3South East UK13.07%
4Yorkshire & Humberside9.76%
5Scotland8.48%
6South West UK7.09%
7Northern UK6.52%
8Not Specified6.52%
9Midlands5.04%
Industry sector
1Offices - Property31.5%
2Net Current Assets21.69%
3Retail18.14%
4Leisure9.73%
5Equities6.52%
6Warehouse - Property5.05%
7Industrials3.55%
8Others3.3%
9Real Estate0.52%
Asset type
1Property71.79%
2Money Market21.69%
3International Equities6.52%
Individual holdings
1DIRECT PROPERTY ASSET74.66%
2DERWENT LONDON PLC2.06%
3LAND SECURITIES GROUP PLC1.34%
4BRITISH LAND CO PLC0.93%
5GREAT PORTLAND ESTATES PLC ORD 15 5/19P0.66%
6LONDONMETRIC PROPERTY PLC0.37%
7SECURE INCOME REIT PLC ORD 10P REG S0.37%
8TRITAX BIG BOX REIT PLC ORD 1P0.29%
9ASSURA PLC0.28%
Management
Fund manager group
Kames Capital
Fund manager company
Kames Capital plc
Fund type
OEIC
Fund objective
The investment objective is to carry on Property Investment Business and to manage cash raised from investors for investment in the Property Investment Business. In doing so, the Kames Property Income Fund aims to provide income with potential for capital growth through investment mainly in commercial property.
Benchmark
  • IA UK Direct Property
Investment style
None
Investment method
Physical
Fund managers
NameSinceBiography
Richard Peacock01/01/2017Richard Peacock is a fund manager in the property team and co-manages the Kames Property Income Fund. He joined us in 2016 from Aviva Investors, where he was fund manager for the Aviva Investors Pensions Ltd Property Fund. Richard has a BA (Hons) in Geography from Durham University and an MSc in Land Management from the University of Reading.
David Wise28/03/2014David Wise joined Kames Capital in October 2007. He is head of the Direct Property Investment team and co-manages the Kames Property Income Fund. David was previously at Morley Fund Management (now Aviva Investors) and its predecessors (Commercial Union and CGU) for 21 years where he was Property Investment Director. During his time at Aviva he launched the Ashtenne Industrial Fund one of the first large indirect property funds and was manager of a number of major funds including the Commercial Union Life Fund, General Accident Life Fund, Norwich Union Linked Life Fund and Aviva Investors Pooled Pension Fund. David is a Chartered Surveyor and board member of AREF (Association of Real Estate Funds), Chairman of the AREF Corporate Governance Committee and served on the Government’s 2007 Leasecode working party.
Compliance
IA Recognised, Non UCITS Retail Scheme, Property Authorised Investment Funds
Domicile
No data available.
Fund for sale in
United Kingdom
Kames Property Income B Gr Acc
Initial charge-
Annual charge0.75%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)0.87%
Total expense ratio (TER)-
Bid price137.38
Offer price137.38
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeK7JP
Kames Property Income B Gr Inc
Initial charge-
Annual charge0.75%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)0.87%
Total expense ratio (TER)-
Bid price109.81
Offer price109.81
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeK7JQ
Kames Property Income B Net Acc
Initial charge-
Annual charge0.75%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)0.87%
Total expense ratio (TER)-
Bid price132.36
Offer price132.36
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeK7JR
Kames Property Income B Net Inc
Initial charge-
Annual charge0.75%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)0.87%
Total expense ratio (TER)-
Bid price109.78
Offer price109.78
Mid price-
CurrencyGBX
Price updated18/05/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeK7JS
Data provided by

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