The fee, which is currently 20% of any outperformance compared to its benchmark – the Bank of England base rate – will also be reduced to 10% of the outperformance when it resumes in January 2013.
Kames said it is taking this step in an aim to continue the momentum it has built in the £65m fund since its launch in February 2010.
The market neutral fund aims to be uncorrelated to the UK equity market and deliver a positive absolute return over a 12-month period in all market conditions.
According to the group, the fund is ranked first quartile in the year to 29 February, with a return of 4.71% in the period, compared to a median of 0.52% from the sector.
Steve Kenny, head of retail sales at Kames, said: "This fund has got off to an excellent start over its first two years and we believe this incentive, coupled with the fund’s performance will give it edge over many of its competitors, many of which experienced negative returns recently.
All other fees and charges on the fund will stay the same.
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…and…
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