Kames fund switches benchmark to RPI+

The benchmark for the fund, managed by Scott Jamieson, will change from the FTSE Index Linked Gilts over five years index to the UK retail price index plus four percentage points, following consultation with advisers and investors.

The fund has consequently changed its Investment Management Sector, shifting from the Mixed Investment 0.35 per cent sector to the Specialist Sector.

Mr Kenny said the new benchmark better represented what the fund aimed to achieve for investors, while RPI was a more widely recognised measure of inflation.

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The fund’s new objective will be to maximise total return and outperform UK RPI by a minimum of 4 per cent each year in the medium term.

Mr Kenny added: “We have made these changes following consultations and believe these changes will not materially impact the performance or risk characteristics of the fund.”

The fund invests across asset classes, principally in fixed income assets, equities and derivatives. It has delivered returns of 17.86 per cent since its launch in November 2010.

Adviser View

Gavin Haynes, managing director of Bristol-based Whitechurch Securities, said: “This is probably more representative of what the fund is trying to do and the objective of the end investor, which is to protect against inflation. The question is whether it can give those good returns over the RPI benchmark.”