UK investment house Kames has boosted its absolute return capabilities with a new fund.

Kames has launched the Kames Global Equity Market Neutral Fund, targeting positive returns regardless of market conditions, with low levels of volatility and very low correlation to underlying markets.

The fund aims to generate a positive absolute return over a rolling three-year period, with lower volatility than government bonds. The risk profile is consistent with investors seeking returns of one month British pound sterling LIBOR interest rate plus 4 per cent per annum net of a 1 per cent annual management charge over a rolling three-year period, Kames said. 

Its base currency will be British pound sterling, but there will also be euro, US dollar, Swedish krona and Swiss franc share classes. The fund’s B share class will have an annual management charge of 1 per cent, with a minimum initial investment of £500,000 ($737,000).

Neil Goddin and Craig Bonthron will co-manage the fund, with support from Malcolm McPartli. It will be available in the UK, Austria, Belgium, Germany, Guernsey, Ireland, Italy, Jersey, Luxembourg, Malta, Netherlands, Spain, Sweden and Switzerland. 

“We are acutely aware of investors’ fundamental focus on capital preservation, especially in current market conditions. The new fund enables us to continue to meet this demand from a global perspective, whilst remaining true to our philosophy of providing real market neutral returns,” said Stephen Adams, head of equities at Kames.

“The new fund will blend quantitative and fundamental research in a well-defined investment process. It complements our existing absolute return franchise, providing investors with a wide choice of strategies.”

The launch follows swiftly the hires of Graeme Sharpe and Rory Sandilands, who joined Kames last week as a product specialist within its multi-asset team and investment manager within its fixed income team respectively.

From Edinburgh and London, Kames managed £57.8 billion on behalf of clients including financial institutions, wealth managers, family offices and financial advisors as at the end of March 2016.