The UK-based investment manager has added to its fixed income range.

Kames Capital has launched a Dublin-domiciled emerging market bond fund.

The Kames Emerging Market Bond Fund will invest mainly in investment grade debt of emerging market sovereigns and corporates through hard currency. It will invest at least 80 per cent of its assets in emerging market bonds, with a minimum of 80 per cent in investment grade bonds.

The fund will aim to outperform the JPM Emerging Market Bond Index Global Diversified IG. Managed by Scott Fleming with Alex Pelteshki as support manager, it will be available to investors in the UK, Austria, Belgium, Germany, Guernsey, Ireland, Italy, Jersey, Luxembourg, Malta, Spain and Switzerland. 

Its base share class will be in US dollars, and there will also be euro and sterling share classes. The B share class will have an annual management charge of 0.65 per cent.

“Dislocation in EM continues as investors seek clarity of US interest rate policy,” said Kames’ head of fixed income, David Roberts. 

“Currently all the headlines on EM inevitably focus on the negative stories about a crisis or defaults as cash flows out of the asset class. Looking beneath those headlines, there is a growing universe of solid investment grade EM issuers which are overlooked. Our fund intends to exploit those opportunities.”

As of the end of June, Kames Capital managed £56.1 billion ($86.6 billion) from its offices in Edinburgh and London.