UK investment house Kames Capital has launched two new funds to complement its existing range.

UK investment house Kames Capital has launched two new funds to complement its existing range.

The launch of the Kames Equity Market Neutral Fund and the Kames Equity Market Neutral Plus Fund means the firm now has four absolute return funds in its investment range.

The Kames Equity Market Neutral Fund is aiming for return of cash plus 4 per cent, in all market conditions, over a 36-month rolling term. The fund will be managed by David Griffiths and David Pringle, who currently run the Kames UK Equity Absolute Return Fund, as well as Malcolm McPartlin. It will typically hold 50 to 100 equity asset positions.

Meanwhile its Equity Market Neutral Plus Fund will aim to generate a return of cash plus 8 per cent, again in all market conditions, over a 36-month rolling term. It will also be managed by Griffiths, McPartlin and Pringle.

The Kames UK Equity Absolute Return Fund has returned 21.04 per cent since launch in February 2010.

Both funds will be registered for sale in the UK and the Channel Islands following launch in Ireland.

"These latest two absolute return funds are intended to build on the success of our existing absolute return strategies which are enjoying considerable success. Our genuine market neutral returns are appreciated by investors in both the UK and Europe, and they 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 Stephen Jones, chief investment officer of Kames Capital.