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Kames launches constrained absolute return fund

Kames launches constrained absolute return fund

Kames Capital has launched another absolute return fund following the soft closure of its Kames Absolute Return Bond fund earlier this year.

Available to both retail and institutional funds the Kames Absolute Return Bond Constrained fund follows the recently announced launch of the Kames Absolute Return Bond Global fund.

The Kames Absolute Return Bond Constrained fund will be managed by Euan McNeil and James Lynch, with support from Paul Dilworth, and will aim to outperform one-month Euribor by 1% a year, net of fees, over rolling 36 month periods.

The Kames Absolute Return Bond Global fund - announced earlier this year - will be managed by John McNeill, Sandra Holdsworth, Nicholas Chatters and Dilworth and will aim to outperform three-month GBP Libor by 2.5% a year, net of fees, over 36 month rolling periods.

Both funds are domiciled in Ireland with the global fund denominated in sterling and the constrained fund denominated in euros.

The Kames Absolute Return Bond fund was soft closed in February this year as it neared its £2 billion capacity.

Kames Capital chief investment officer Stephen Jones (pictured) 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.

'Due to [Kames Absolute Return Bond fund's] structure we have potential capacity constraints when it breaches this figure, hence the reason we have stopped actively marketing it. In response to client demand, we have launched these new funds that share many similarities with the Kames Absolute Return Bond fund.'

Over three years to 30 April 2015, the Kames Absolute Return Bond fund has produced 5.78% while the sector average is 10.36%.

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