Kames adds to absolute return bond suite

Kames adds to absolute return bond suite

Kames Capital has launched a ‘constrained’ absolute return bond fund alongside the global product it announced earlier in the year.

The company said in February it would launch the Absolute Return Global Bond fund because its existing Absolute Return Bond fund run by Stephen Snowden and Colin Finlayson was set to reach capacity.

The fund is now nearly £2bn in size and has delivered positive returns in 32 out of 43 months, the group said.

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Now the company has decided to launch its Absolute Return Bond Constrained fund, which will provide a similar strategy to the other products in the range and aim to deliver “low risk positive absolute returns over a rolling three-year period”.

The global fund will be co-managed by John McNeill, Sandra Holdsworth, Nicholas Chatters and Paul Dilworth, while the constrained fund will be co-managed by Euan McNeil and James Lynch, supported by Paul Dilworth.

Both funds will receive input from across Kames’s 27-strong fixed income team.

The new funds are domiciled in Ireland and available in sterling, euro, Swiss franc and dollar share classes. The base currency for the global fund will be sterling and for the constrained fund it will be euros.

Kames chief investment officer Stephen Jones said the group had seen “significant interest” in the absolute return bond space.

“Our Kames Absolute Return Bond fund has experienced significant asset growth over the past 12 months and with its pipeline we expect its size to settle at around the £2bn mark very soon,” he said.

“However, due to the fund’s structure we have potential capacity constraints when it breaches this figure, hence the reason we have stopped actively marketing it.”