In this article, we’ll look into Kensington funds to get a better grasp of their features, charges and performance, based on data from the Financial Times.
Overall, we will explain why there are superior options in the market for most expats and HNWIs.
The funds were legally established and registered in Ireland and operate under the rules and regulations set forth by the Irish financial authorities.
If you have any questions or want to invest as an expat or high-net-worth individual, you can email me (hello@adamfayed.com) or WhatsApp +44-7393-450-837.
Are Kensington funds investment worth it?
Kensington Diversified Growth Fund A GBP Accumulation
The Kensington Diversified Growth Fund A GBP Accumulation (ISIN IE00BD71CH72) is primarily designed for long-term capital growth and appreciation of the invested capital by offering Accumulation Shares, a specific type of unit within the investment fund.
What separates apart accumulation shares is how they handle the fund’s dividends, interest, and capital gains. Income generated by the fund is reinvested in the fund without any action required from the investors. New units bought with investors’ money increase the fund’s worth and may increase returns over time too. In that sense, the Kensington Diversified Growth Fund A GBP Accumulation can be a great option for people interested in racking up cash and earning above-average returns.
This Kensington fund currently has a total fund size of 27.32 million pounds, as of July 31, 2023. Within the fund, the specific share class size stands at 15.31 million pounds, also as of the same date. This share class size represents a portion of the overall fund.
Investors should take note of the maximum annual charge for this fund, which is set at 0.50%, impacting the costs associated with investing. Additionally, this fund is not available for UK ISA (Individual Savings Account) investments. It’s accessible from multiple places like Guernsey, Ireland, the Isle of Man, and Malta.
The portfolio of the Kensington Diversified Growth Fund A GBP Accumulation allocates 17.03% of its holdings to its top five investments, one of which is Microsoft.
In terms of asset type, non-UK stocks make up the bulk of the fund’s assets (71.25%). Industrials and Financial Services are the top two sectors it invests in, with a large chunk of the holdings located in the US (48.50% to be exact).
The fund’s investment style predominantly focuses on stocks with a Large Market Cap and adopts a Blend investment style.
Fund Performance
Considering the daily trailing total returns, the Kensington Diversified Growth Fund A GBP Accumulation recorded a negative return of 0.07% over the past five years, while posting a slight gain of 0.48% over the past year.
Looking at a six-month time frame, the fund experienced a decline of 0.28%. For the past month, the gain was 0.86%.
The fund generated a positive annual trailing total return of 4.76% in 2021. A major drop of 19.64% occurred in 2022, though. Year to date, the fund has gained 3.12% (that’s from January through the Sept. 7 data cutoff).
Kensington Diversified Balanced Fund B USD Accumulation Hedged
The Kensington Diversified Balanced Fund B USD Acc Hedged (ISIN IE00BD71C009) follows an investment approach aimed at achieving a balanced relationship between risk and return by investing across asset types.
In this particular share class, known as Accumulation Hedged Shares, any income or dividends generated by the fund’s investments are reinvested (accumulation feature), and the fund employs strategies for currency hedging.
Investment funds hedge currency exchange rate swings to avoid losses. Funds that invest in foreign currency assets are affected by both asset performance and exchange rates with the investor’s base currency. Currency hedging uses forward contracts, options, and currency swaps.
The Kensington Diversified Balanced Fund B USD Acc Hedged adopts a particular investment style, focusing on large-cap stocks, while also employing a blend of investment strategies. It was launched on April 11, 2018 and is denominated in USD, with pricing conducted on a daily basis.
As of July 31, the fund’s size stands at 34.54 million pounds, and its share class size is 5.93 million pounds. The maximum annual charge for this fund is capped at 0.50%, and it is not available for UK ISA investments. It is available in Guernsey, Ireland, Isle of Man, and Malta.
This Kensington fund’s portfolio allocation places a significant emphasis on its top 5 company holdings, with a substantial 81.75% of its assets allocated to these holdings, primarily with a significant position in Fujitec Co Ltd.
About 91.71% of the fund’s assets are in companies based outside the UK, demonstrating its emphasis on global markets. This fund’s portfolio is heavily weighted toward assets in the industrial sector (45.31%) and the technology sector (37.82%). With a whopping 75.53% of its total assets invested in the country of Japan, it is clear that this fund has a very specific geographic focus.
Fund Performance
Looking at the dailies, the performance of Kensington Diversified Balanced Fund B USD Acc Hedged during the past year and over the past five years were negative at 0.08% and 11.64%, respectively. A decline of 7.21% was also seen over the past six months, but the most recent month witnessed a rise of 2.98%.
The fund’s yearly trailing performance in 2021 was positive, amounting to a return of 4.82%. However, the drop in value stood at 5.33% in 2022 while the unfavorable YTD return was 5.47% as of Sept. 7.
Kensington Diversified Growth Fund Class BI USD Acc Hedged
The Kensington Diversified Growth Fund Class BI USD Acc Hedged (ISIN IE00BMYLNM56) is characterized by its investment style, which focuses on large-cap stocks and employs a blend of investment strategies. This fund was launched on December 23, 2021, and is denominated in GBP, with daily pricing.
As of August 31, the fund’s total size stands at 26.43 million pounds, while the share class size is 1.03 million pounds. It has a maximum annual charge capped at 0.12%. The minimum initial investment required for this fund is 789 pounds, and additional investments must also meet this minimum threshold. Notably, this fund is not eligible for UK ISA investments and is available for sale in Ireland.
The portfolio allocation of this fund places an emphasis on its top 5 company holdings, accounting for 17.03% of the portfolio, with Microsoft being the predominant holding. In terms of asset type, a significant portion, approximately 71.25%, is invested in non-UK stocks.
This fund’s portfolio is heavily weighted toward assets in the industrial sector (15.02%) and the financial services sector (14.88%). Regarding asset allocation, over 48.50% of the fund’s total is invested in the US, indicating a sizable footprint there.
Fund Performance
In the most recent year, it experienced a decrease of 8.06% considering the daily trailing returns. Over the preceding six months, the fund recorded a downturn of 5.62%. However, it exhibited a positive trend over the last month, posting a gain of 3.20%.
In terms of annual results, the fund dropped by 9.80% in 2022. Year to date through Sept. 7, there has been a loss of 2.66% for the fund.
Kensington Diversified Balanced Fund BL USD Accumulation
The Kensington Diversified Balanced Fund BL USD Acc (ISIN IE00BMYLN928) leans towards large-cap stocks and employs a blended investment approach. This fund was rolled out on December 29, 2021, and its pricing is conducted daily in US dollars.
As of August 31, 2023, the fund’s total size is worth 33 million pounds, while the share class size stands at 127,790 pounds. It maintains a maximum annual charge rate of 0.30%. It’s important to note that this fund is not eligible for UK ISA investments and is available for purchase only in Ireland.
A significant portion of the fund’s portfolio, accounting for 81.75%, is invested in its top 5 holdings, with Fujitec Co Ltd being a notable inclusion. When it comes to asset types, a substantial 91.71% of the portfolio consists of non-UK stocks. The fund’s primary sectors of focus are industrials, comprising 45.31%, and technology, making up 37.82%. Geographically, the majority of its investments are centered in Japan, constituting 75.53% of the portfolio’s regional allocation.
Fund Performance
Daily trailing returns over the past year was negative 10.80%. When only the past six months are considered, the return fell 6.83%, whereas the most recent month shows a positive return of 3.03%.
The fund logged a drop of 6.67% for the whole year 2022 when looking at the annual trailing total returns, and YTD through Sept it slid 4.94%.
Kensington Diversified Balanced A GBP Accumulation
Kensington Diversified Balanced A GBP Acc (ISIN IE00BD71BZ89) focuses on large market-cap stocks and employs a blend of investment approaches. The fund adopts an accumulation income treatment strategy and was launched on April 11, 2018, with pricing conducted in GBP on a daily basis.
As of July 31, 2023, the fund has reached a substantial size of 34.54 million pounds, with a share class size of 24.59 million pounds. The maximum annual charge for this fund is set at 0.50%, and it is not available for UK ISA investments. It is accessible for purchase in Guernsey, Ireland, Isle of Man and Malta.
The top company holding within the fund’s portfolio is Fujitec Co Ltd.
In terms of asset composition, Kensington Diversified Balanced A GBP Acc primarily consists of non-UK stocks, accounting for a significant 91.71% of its holdings. The fund’s portfolio is further divided into top sectors, with industrials making up 45.31% and technology contributing 37.82% of the total allocation. The fund has a substantial focus in Japan at 75.53% of its investments; the United States accounts for 9.98%.
Fund Performance
The Kensington Diversified Balanced fund has generated returns of -0.58% over the previous five years, -1.88% over the past year, -1.38% over the past six months, and +0.81% during the past month, according to its daily trailing total returns.
When looking at the trailing 12-month total returns, the fund earned 5.21% in 2021. However, it did poorly in 2022, with a drop of 14.48%. Year-to-date performance through September shows a positive return of 0.98%.
Kensington Diversified Growth Fund Class BL USD Acc Hedged
The Kensington Diversified Growth Fund Class BL USD Acc Hedged (ISIN IE00BMYLNJ28) follows an investment approach primarily centered on large-cap stocks, categorized as blend in terms of investment style. It was initially launched on October 4, 2021, with its pricing conducted daily.
As of July 31, 2023, the fund’s total size stood at 27.32 million GBP, while this particular share class had a size of 368,170 GBP. The fund carries a maximum annual charge of 0.50% and is not available for UK ISA investments, but it is open for sale in Ireland.
Examining its basket composition, the fund’s top company holding is Microsoft Corp, representing 4.18% of its total portfolio. In terms of asset allocation, non-UK stocks constitute a significant portion, making up 71.25% of the holdings. The top sectors within the portfolio include Industrials at 15.02% and Financial Services at 14.88%. Moreover, the fund has a regional emphasis in the US, which accounts for 48.50% of its investments.
Fund Performance
In terms of daily trailing total returns, the fund’s performance over the past year indicates a decline of 8.48%. Looking at a shorter time frame, specifically the past six months, it exhibited a decrease of 5.75%. However, over the last month, there was a notable improvement with a positive return of 3.16%.
Shifting our focus to the annual trailing total returns for the year 2022, the fund posted a negative return of 10.21%. As for the year-to-date performance, it shrank 3.54%.
Kensington Diversified Growth Fund Class AI GBP Accumulation
Kensington Diversified Growth Fund Class AI GBP Acc (ISIN IE00BMYLNL40) follows a large-cap investment style and blends various assets in its portfolio. It operates with an accumulation income treatment and was launched on January 19, 2022. The fund’s pricing is denominated in GBP and is updated daily.
As of August 31, 2023, the fund’s total size stands at 26.43 million GBP, with the share class size amounting to 699,800 GBP.
The minimum initial investment is 1,000 GBP and future further contributions must also be at least 1,000 GBP; the maximum annual charge is 0.12%. This fund can only be purchased in Ireland, so UK ISA investors should look elsewhere.
The fund’s largest holding is in Microsoft Corp, and in terms of asset types, it primarily invests in non-UK stocks, constituting 71.25% of its portfolio. The company has 15.02% in Industrials and 14.88% in Financial Services. Geographically, the fund has a significant exposure to the US, with 48.50% of its assets allocated to this region.
Fund Performance
In terms of daily trailing total returns, the past three months have shown a positive performance of 1.73%. Looking at a shorter time frame, the one-month performance also reflects a positive return of 1%.
Kensington Diversified Growth Fund Class AL GBP Acc
The investment style for this particular Kensington fund (ISIN IE00BMYLNH04) leans towards a blend, with a primary focus on large market cap companies. Income from this investment launched on October 4, 2021 is accumulated, and it is denominated in GBP.
The pricing of this fund is done on a daily basis, and as of July 31, 2023, it boasts a total size of 27.32 million GBP, with the share class size at 325,280 GBP for the same date. The maximum annual charge for managing this fund is capped at 0.50%, and it’s worth noting that it’s not available for UK ISAs. The fund is open for sale in Ireland.
Additionally, it’s interesting to note that the fund’s top holding is Microsoft, and the majority of its non-UK stock investments, amounting to 71.25%, are allocated to the US. The fund also has significant exposure to the Industrials sector at 15.02% and the Financial Services sector at 14.88%.
Fund Performance
For the dailies, the Kensington Diversified Growth Fund Class AL GBP Acc has gained 0.98% over the past year but inched down 0.02% over the past six months. Looking at the most recent month, there was a positive uptick of 0.91%.
For a broader view, the annual trailing total returns for 2022 showed a decrease of 19.48%. However, when considering the year-to-date performance through Sept. 7, it has rebounded with a gain of 4.23%.
Kensington Diversified Growth Fund B USD Acc Hedged
This fund (ISIN IE00BD71CJ96) concentrates on large market cap companies. Income generated from this investment is accumulated. The fund was launched on April 10, 2018, and it’s denominated in USD.
Pricing occurs daily, and as of August 31, 2023, the fund’s size stands at 26.43 million GBP, while the share class size is 7.15 million GBP. The maximum annual charge for managing this fund is capped at 0.50%. It’s not available for UK ISA, but it can be purchased in Guernsey, Ireland, the Isle of Man, and Malta.
In terms of its asset allocation, a substantial portion, accounting for 71.25%, is invested in non-UK stocks. The fund’s top sectors of investment include Industrials at 15.02% and Financial Services at 14.88%. Geographically, the US is the dominant region, representing 48.50% of the fund’s holdings.
Fund Performance
The Kensington Diversified Growth Fund B USD Acc Hedged has produced a meager profit of 0.55% during the past five years. For the 12-month period through September, the fund saw a drop of 9.11%. The fund has also declined by 5.97% over the past six months, but it has increased by 3.10% in Au.
For an annual perspective, the trailing total returns in 2021 were 4.36%, indicating a positive performance for that year. In contrast, the year 2022 witnessed a decrease of 10.44%. Looking at the year-to-date performance, the fund has encountered a decline of 3.29%.
Kensington Diversified Income Fund Class CI EUR Accumulation
The large market cap-focused fund (ISIN IE000NE5RY35) employs an accumulation strategy. The fund was launched on February 7, 2022, and it’s denominated in euros. Pricing for this fund is daily, and as of August 31, 2023, the fund’s total size stands at 8.11 million GBP, while the share class size is 12,800 GBP. The maximum annual charge for managing this fund is limited to 0.30%. Like the other Kensington funds, it is not available for UK ISA; it can be purchased in Ireland.
In terms of its asset allocation, the largest holding within the portfolio is Sony Group, accounting for a substantial 41.40% of the total. The fund predominantly invests in non-UK stocks, making up 90.32% of its holdings. When considering sectors, the tech sector holds a dominant position at 44.13%, followed closely by Industrials at 35.59%. Geographically, Japan is the primary region of focus, representing a significant portion of 71.64% of the fund’s holdings.
Fund Performance
There was a decline of 4.30% in the daily trailing total returns of this investment over the past year, a 6.22% drop in six months, and a 0.42% fall in one month.
For the 3.39% loss in annual trailing total returns YTD through Sept. 7 is indicative of poor performance.
Kensington Diversified Income Fund Class A GBP Acc
The investment strategy of Kensington Diversified Income Fund Class A GBP Acc (ISIN IE000HOD9SX4) is a combination, with an emphasis on large size stocks. Investing in this way allows for the accumulation of earnings. The fund, rolled out on October 4, 2021, is denominated in GBP.
The fund’s share class size as of August 31, 2023, was 1.20 million GBP, while the fund’s total size was 8.11 million GBP (pricing occurs daily). Management fees for this product cannot exceed 0.30% each year. The minimum initial investment is 1,000 GBP, with subsequent investments likewise beginning at 1,000 GBP. Importantly, this fund cannot be purchased with a UK ISA, but it is available in Ireland.
Sony Group is the largest stake in the fund. In terms of asset allocation, non-UK stocks make up the bulk of its holdings (90.32%). When broken down by industry, technology comes out on top with a 44.13% share, followed by manufacturing with 35.59%. The largest single country allocation in the fund is to Japan at an impressive 71.64%.
Fund Performance
When examining the daily trailing total returns for this investment, over the past year, it has shown a modest increase of 0.82%. For six months, there was a slight decline of 0.72%, but it displayed a minor gain of 0.24% in August.
For an annual perspective, the trailing total returns in 2022 slid 15.38%. However, in the year-to-date performance, it has rebounded with a positive return of 3.40%.
Kensington Diversified Income Fund Class AI GBP Acc
The Kensington Diversified Income Fund Class AI GBP Acc (ISIN IE000RH3A303) targets large-cap stocks and is designed to offer investors a steady and dependable source of income. It accumulates income and was officially launched on October 4, 2021, with the currency of pricing set in GBP. The fund is priced daily.
As of August 31, 2023, the fund’s total size stands at 8.11 million GBP, while the share class size is 2.92 million GBP. The maximum annual charge is capped at 0.30%, and the minimum initial investment and subsequent additional investment requirements are 1,000.00 GBP. This fund is not available for ISAs but can be acquired in Ireland.
Within the fund’s portfolio, the most substantial holding is in Sony Group. In terms of asset allocation, a significant portion, accounting for 90.32%, is allocated to non-UK stocks. Among the top sectors in which it invests, Technology takes the lead with 44.13% allocation, followed closely by Industrials at 35.59%. Geographically, Japan is the primary focus, representing a significant 71.64% of the fund’s holdings.
Fund Performance
In one year through Sept. 7, the fund has demonstrated a minor improvement of 1.20%. However, it posted a slight decline of 0.34% over the past six months. In August, it displayed a marginal growth of 0.37%.
For an annual perspective, the trailing total returns in 2022 shrank 15.38%. In contrast, it has rebounded with a positive return of 3.63% in the year-to-date performance.
Kensington Diversified Income Fund Class AL GBP Acc
This investment vehicle (ISIN IE000RQQC5G3) launched on October 4, 2021 adheres to a blend investment style with a specific focus on large market capitalization stocks. Income generated from this fund is accumulated; it is denominated in GBP and priced daily.
As of July 31, 2023, the fund’s total size amounts to 8.53 million GBP, while the share class size stands at 907,990 GBP. The maximum annual charge for managing this fund is 0.30%, and the minimum initial investment required is 1,000 GBP. Subsequent top-ups also start at 1,000 GBP. The fund can be bought in Ireland.
The fund’s primary holding is in Sony Group, with a substantial portion of its assets allocated to non-UK stocks, accounting for 90.32% of its portfolio. When it comes to sectors, Technology takes the lead with an allocation of 44.13%, followed by Industrials at 35.59%. Geographically, Japan is the predominant region of focus, representing a significant 71.64% of the fund’s holdings.
Fund Performance
In terms of performance, the daily trailing total returns over the past year indicate an incremental gain of 0.95%. Over the last six months, the fund dipped 0.60%, while in the most recent month, it edged up 0.28%. For an annual perspective, the trailing total returns in 2022 slid 15.38%, whereas it has recovered with a positive return of 3.47% YTD.
Kensington Diversified Income Fund Class B USD Acc
The Kensington Diversified Income Fund Class B USD Acc (ISIN IE000PO4OC39) mainly focuses on large market capitalization stocks. It accumulates income and was initially launched on October 3, 2021, with GBP as its pricing currency.
This fund’s pricing occurs on a daily basis, and as of July 31, 2023, the total fund size stands at 8.53 million GBP, while the share class size is 480,810 GBP. The annual management charge for this fund is capped at 0.30%. The minimum initial investment required is 777 GBP, with subsequent additional investments also starting at 777 GBP. It is accessible for purchase in Ireland.
Sony Group takes the lead as the top holding within this fund’s portfolio, and a significant 90.32% of its assets are allocated to non-UK stocks. When examining sectors, Technology is the primary sector of focus, with an allocation of 44.13%, followed by Industrials at 35.59%. In terms of geographic allocation, Japan dominates the portfolio, constituting a substantial 71.64% of the fund’s holdings.
Fund Performance
In the context of performance, the daily trailing total returns over the past year indicate a decline of 8.76%. August showed a profit of 2.44%, after a loss of 6.42% over the previous six months. Meanwhile, the annual trailing total returns showed declines of 5.83% in 2022 and 4.34% YTD.
Kensington Diversified Income Fund Class BI USD Acc
The investment approach of this fund (ISIN IE000YX8IRP9) prioritizes large-market-cap stocks and adopts a blend investment style with income accumulation. It was initially launched on October 4, 2021, with GBP as its pricing currency. This fund is subject to daily pricing.
As of July 31, 2023, it possesses a total fund size of 8.53 million GBP, while the share class size stands at 2.37 million GBP. The maximum annual charge for managing this fund is set at 0.30%, and the minimum initial investment requirement is 777 GBP, with additional investments permitted in the same amount. This Kensington fund is not available for UK ISA but can be bought in Ireland.
The fund’s leading holding is in Sony Group, and a significant 90.32% of its portfolio is invested in non-UK stocks. When it comes to sector allocation, Technology takes the forefront with an allocation of 44.13%, closely followed by Industrials at 35.59%. Geographically, the portfolio’s primary focus is Japan, representing a substantial 71.64% of the fund’s holdings.
Fund Performance
In terms of performance, over the past year, the daily trailing total returns depict a decline of 8.85%. The fund showed a decline of 6.19% over the prior six months, but an increase of 2.54% during the prior month. The trailing total returns in 2022 increased by 6.40% annually, but the performance through Sept. 7 was down by 3.42%.
Kensington Diversified Income Fund Class BL USD Acc
The Kensington Diversified Income Fund Class BL USD Acc (ISIN IE000GB9M9Z9) was launched on October 4, 2021 and focuses on large-cap equities and uses a mixed investment methodology to accumulate income.
This GBP-denominated fund trades daily and has an 8.11 million GBP total fund size as of August 31, 2023, with a 684,740 GBP share class size. The minimum initial investment is 789 GBP, with future further contributions likewise commencing at 789 GBP. The maximum annual charge for managing this fund is capped at 0.30%. This fund is accessible for purchase in Ireland, but it is not eligible for UK ISAs.
The fund’s primary holding is Sony Group, and a whopping 90.32% of its holdings are in companies based in countries other than the UK. The allocation percentages show that the technology sector receives 44.13%, followed by the industrials sector with 35.59%. The majority of the fund’s assets—71.64%—are invested in the Japanese market.
Fund Performance
The daily trailing total returns for the past year show a loss of 9.08% in terms of its performance. The fund dropped by 6.49% during the past six months, but it climbed 2.47% in the most recent month. Annually, 2022’s trailing total returns showed growth of 6.23%, while this year’s performance thus far shows a fall of 3.81%.
Kensington Diversified Income Fund Class C EUR Acc
The investment strategy for this fund (ISIN IE000UMGBVL9) predominantly centers on stocks with large market cap, embracing a blend of investment styles, and opting for income accumulation. The fund is priced in GBP on a daily basis.
As of August 31, 2023, the fund’s total size amounted to 8.11 million GBP, with the share class size reaching 33,490 GBP. Notably, the fund is subject to a yearly charge of 0.30%, and the minimum initial investment stands at 856 GBP, with subsequent top-ups starting at the same amount. The fund is not available for UK ISA; it can be acquired in Ireland.
Sony Group is the premier holding within this fund’s portfolio, and the bulk of its assets, approximately 90.32%, are invested in non-UK stocks. When examining sector allocation, Technology takes the lead with an allocation of 44.13%, closely trailed by Industrials at 35.59%. This fund holds 71.64% of its assets in Japan.
Fund Performance
Over the past year, the daily trailing total returns slid 4.70%. In the preceding six months, the fund fell 6.62%, while in the most recent month, it displayed a minor dip of 0.58%. On an annual basis, the trailing total returns for 2022 plunged 14.18%, whereas the year-to-date performance went down 2.72%.
The long-term performance has been relatively poor.
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