UK investment house Kames Capital is launching two absolute return funds this November - both managed by David Griffiths and David Pringle.

UK investment house Kames Capital is launching two absolute return funds this November - both managed by David Griffiths and David Pringle.

The Kames Equity Market Neutral Fund will target a return of cash plus 4 per cent, in all market conditions, over a 36 month rolling term. The fund will typically hold 50 to 100 equity asset positions.

 The Equity Market Neutral Plus Fund aims to generate a return of cash plus 8 per cent, again in all market conditions, over a 36 month rolling term.

Kames has nearly £750 million ($1.209 billion) in its current absolute return portfolios with its Kames UK Equity Absolute Return Fund returning 19.97 per cent since launch in February 2010, whilst the Kames Absolute Return Bond Fund has returned 7.18 per cent since its launch in September 2011.

Both new funds will be registered in Dublin. Post launch, the funds will also be registered for sale in the UK, Austria, Belgium, Germany, Channel Islands, Ireland, Malta, Spain and Switzerland.

"We are seeing some real traction within our existing absolute return strategies as investors appreciate our genuine market neutral returns and these investors and our European clients are now asking for us to replicate these strategies but with the potential for greater returns on their capital. We believe these two funds meet this demand whilst remaining true to our absolute philosophy of providing real market neutral returns," said Kames’ chief investment officer Stephen Jones.