Fixed Income  

Kames cuts fees on Investment Grade Global Bond fund

Kames cuts fees on Investment Grade Global Bond fund

Kames Capital has lowered the annual management charge (AMC) on its Investment Grade Global Bond fund from 0.8 per cent to 0.65 per cent.

The reduction in the AMC looks set to reduce the ongoing charges figure (OCF) on the clean share class to 0.81 per cent.

The firm has also switched the fund’s benchmark from the Lipper Global Bond Global Corporate Median index to the Barclays Global Aggregate Corporate index.

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Both changes have come following a “a review of the fund’s positioning in the European markets”.

Steve Kenny, head of sales at Kames, said the index switch was designed to “bring the fund into line with how European investors compare investment grade bond funds”.

The index switch means the duration on the fund, its exposure to movements in interest rates, will rise from five years to 6.4 years because the fund is designed to be “index-neutral” on duration, copying the position of the index.

The fund, co-managed by Euan McNeil and Stephen Snowden, has delivered a return of 52.8 per cent since its launch in November 2007, compared to a 35.6 per cent rise in the Barclays Global Aggregate Corporate index, according to data from FE.

In spite of the fund’s outperformance, its size is currently only $142m (£93.2m).