Kames to close underperforming Strategic Assets fund

Kames Capital is set to close its underperforming £28.8m Strategic Assets fund at the end of the month.

The fund, run by Sean Flanagan, has delivered just 1.4 per cent since its launch in March 2011 putting it firmly in the bottom decile of its IMA Mixed Investment 20-60% Shares sector, according to FE Analytics.

The fund’s factsheet says the fund will close on January 31 subject to FCA approval.

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Mr Flanagan is part of the company’s multi-asset group which runs insured and institutional funds but is not a named manager on other retail funds.

He joined Kames in 2010 from hedge fund Moore Europe Capital Management where he was a financial sector analyst.

A Kames spokesman said the decision had been made after “an extensive review of the fund”.

“The objective of the fund was to generate positive returns over a three-year period, to achieve this, the fund had capital preservation at the centre of its philosophy,” the spokesman said.

“However, this approach had a negative impact both on the fund’s absolute performance and its performance compared to its IMA peer group.

“The fund’s performance has therefore failed to meet the high standards we aim to deliver for our clients.”

The spokesman added the perfomance had “affected the marketability of the fund” and so had “impacted on its long-term commercial viability”.