London-based Kleinwort Benson Private bank has launched two funds in response to investor demand for low risk absolute return products, acco...

London-based Kleinwort Benson Private bank has launched two funds in response to investor demand for low risk absolute return products, according to the bank. The two funds – the KB Elite Absolute Return and the KB Elite Balanced Total Return – have different risk/return profiles and are the first in a planned series of launches. Both funds will invest in a diversified portfolio comprising equities, fixed income, UK property, commodities, hedge funds and private equity. Kleinwort Benson said the KB Elite Absolute Return aims to achieve profits that are clearly in excess of cash but with the same volatility as medium to long-term government bonds. In contrast, the KB Elite Balanced Total Return is designed to achieve long-term capital growth equivalent to equities with the same medium to long-term volatility as government bonds.