The move broadens Kames’ €3.9bn equity and fixed income absolute return offering beyond the established six funds.
The new fund will be co-managed by Neil Goddin and Craig Bonthron, with support from Malcolm McPartlin. It will aim to deliver three key things; positive returns regardless of market conditions, low volatility and very low correlation to underlying markets.
Positive absolute return over a rolling three year period will be targeted, with lower volatility than government bonds. Kames said the risk profile is consistent with investors seeking returns of 1 month GBP LIBOR +4% per annum net of 1% AMC over a rolling three year period.
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 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%. The minimum initial investment is £500,000.
Head of equities at Kames Capital Stephen Adams said: “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.
“The new fund will blend quantitative and fundamental research in a well-defined investment process,” Adams added. “It complements our existing absolute return franchise, providing investors with a wide choice of strategies.”
