New Products
Kames Capital Boosts Absolute Return Franchise With Double Bond Fund Launch
.jpg)
Kames Capital has made two new additions to its absolute return bond fund offering.
Kames Capital, the UK-based investment manager, has launched two low-risk absolute return bond funds.
The Kames Absolute Return Bond Global Fund and the Kames Absolute Return Bond Constrained Fund are aimed at institutional and retail investors. They will follow a similar strategy to the existing Kames Absolute Return Bond Fund, which the firm decided to stop marketing in February on the basis of limited capacity as the fund approaches the £2 billion ($3 billion) assets under management mark.
The new Ireland-domiciled funds seek positive absolute returns over a rolling three-year period irrespective of market conditions.
Over the period, the Kames Absolute Return Bond Global Fund aims to outperform the three month GBP Libor by 2.5 per cent a year net of fees, while the Kames Absolute Return Constrained Fund aims to outperform the one month Euribor by 1 per cent a year net of fees.
The base currency for the global fund will be sterling and for the constrained fund, euros. Both funds will be available in sterling, euro, Swiss franc and US dollar share classes.
The global fund will be co-managed by John McNeill, Sandra Holdsworth, Nicholas Chatters and Paul Dilworth, while the constrained fund will be co-managed by Euan McNeil and James Lynch, and supported by Dilworth.
“These latest additions to our growing absolute return franchise are aimed at the low risk end of both the professional retail and institutional markets, where investors are looking for positive returns regardless of the market conditions,” said Kames' chief investment officer, Stephen Jones.
“We are seeing a lot of demand for this type of fund from retail and institutional clients. Pension plans for example are using absolute return bond funds in various ways, particularly as the LIBOR generator alongside their LDI strategies. The new global fund is well positioned to meet this demand.”
Kames Captial manages around £58.2 billion from Edinburgh and London for UK and international clients.
