Kames Capital offers clarity as fund changes name

Kames Capital has renamed its Diversified Income Fund to offer “advisers and end-customer clarity” and rebutted the suggestion the name change was to help sales.

With the name changing from Diversified Income fund to Diversified Monthly Income, the firm is emphasising that the fund pays a monthly income, which is relatively rare.

A company statement said market feedback prompted the move. Fund sales have been positive, but when asked by Funds Europe what the feedback was and if the name change of the fund was to help distributors sell it, Steve Kenny, Kames’ director of wholesale, said: “We decided on the new name following a number of discussions with distributors, ratings firm and clients.

“Typically, income funds pay out on a quarterly or annual basis – monthly payments are a rare thing, and while that’s not the fund’s USP from our perspective, we wanted to emphasise that difference, and offer advisors and end-customer clarity.”

Kenny said the name change might “move the fund along” in terms of assets under management, but pointed out assets were already healthy at £305 million (€393 million).

Since its February 25, 2014, launch, the fund has delivered a yield of 5.61%, slightly in excess of its target.

Fund firms are increasingly required to help distributors sell funds. Brand expert Diana Mackay said in a past Funds Europe branding roundtable: “Five or ten years ago, if many groups tried to create end-client marketing messages, their distributors would feel threatened that they were after direct business. Now they are actively asking for help with selling products. Distributors want clients to come to them and say ‘I want this fund’.”

The fund will be renamed from June and Kames Capital manages assets of £57 billion, as of year-end 2015.

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