Edinburgh-headquartered Kames Capital, the recently rebranded UK arm of Aegon Asset Management, has launched the Kames Absolute Return Bond Fund.

Jointly managed by Colin Finlayson and Stephen Snowden, the fund aims to provide investors with positive total returns over a rolling three to five year period, regardless of market conditions.

It will seek to achieve this objective by investing in global debt in any currency, ranging from AAA government bonds through to high yield and emerging market bonds. It may invest in all types of fixed and floating rate fixed income securities and will use financial derivatives to run a long/short strategy. 

The fund is registered in Dublin and is initially available in the UK, Ireland and Channel Islands, although it will also be available to other European investors subject to regulatory approvals.

The launch is the first since the rebrand on 1 September and also marks Kames Capital’s first step into the absolute return fixed income arena, although it currently employs absolute return strategies in other sectors such as the Kames UK Equity Absolute Return Fund.