The UK investment house has boosted its multi-asset offering in Europe.

Kames Capital has launched a Dublin-domiciled diversified income fund targeting capital growth.

The Kames Global Diversified Income Fund will aim to generate a monthly income of 5 per cent per year, with a target total return (income plus capital growth) of 7-8 per cent after fees over three to five years.

The fund will be managed by Vincent McEntegart, who runs Kames' UK-domiciled version of the fund, which has logged a total return of 14.35 per cent since launch in February 2014. The new fund will combine top-down macroeconomic views with bottom-up stock selection to comprise 200 to 300 holdings, ranging from investment grade and high yield bonds, global equities, listed property and specialist income – including listed infrastructure, asset leasing and renewables.

“Demand for multi-asset products is increasing as investors look for funds that offer a robust and proven asset allocation process,” said Scott Jamieson, head of multi-asset investing at Kames. “Our highly experienced multi-asset group have a proven income-generating ability demonstrated by the success of our existing UK-domiciled Kames Diversified Income Fund.”

Subject to completion of a UCITS passport or other applicable rules, the fund will be available in the UK, Austria, Belgium, Germany, Guernsey, Ireland, Italy, Jersey, Luxembourg, Malta, Netherlands, Spain, Sweden and Switzerland. Its base currency will be euro, but there will also be US dollar, sterling, Swiss franc and Swedish krona share classes.

From Edinburgh and London, Kames Capital managed £56.8 billion ($82.7 billion) on behalf of clients including financial institutions, wealth managers, family offices and financial advisors as at the end of 2015. Earlier this month, the company announced the launch of a global sustainable equity fund.