Kames Absolute Return Bond Constrained Fund aims to outperform the one month Euribor by 1% a year net of fees over a rolling 36 month period. This and the global vehicle have both been launched as a response to the popularity of £2bn Absolute Return Bond Fund, which the firm is no longer actively marketing.
The new funds provide investors with a similar strategy, both aiming to generate low risk positive absolute returns irrespective of market conditions.
As revealed in February, the global fund is co-managed by John McNeill, Sandra Holdsworth, Nicholas Chatters and Paul Dilworth. It aims to outperform the three month GBP Libor by 2.5% a year net of fees, again over a 36 month rolling period.
The new funds are domiciled in Ireland and available in sterling, euro, Swiss franc and dollar share classes. The base currency for the global fund is sterling and for the constrained fund it is euros.
Kames chief investment officer, Stephen Jones, said: “These latest additions to our growing absolute return franchise are aimed at the low risk end of both the professional retail and institutional markets, where investors are looking for positive returns regardless of the market conditions.
“We have seen significant interest in this area of the market with the success of our Kames Absolute Return Bond Fund. This fund has experienced significant asset growth over the past 12 months and with its pipeline we expect its size to settle at around the £2bn mark very soon.
“However, due to the fund’s structure we have potential capacity constraints when it breaches this figure, hence the reason we have stopped actively marketing it.”