Fixed IncomeNov 2 2015

Kames to launch investment grade EMD fund

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Kames to launch investment grade EMD fund

Kames Capital is to launch an emerging market bond fund investing mainly in investment grade corporate and sovereign debt.

The Kames Emerging Market Bond fund will be managed by Scott Fleming, with Alex Pelteshki as support manager.

The Dublin-domiciled fund will be available to UK investors. It will aim to have 80 per cent of its assets in emerging market debt, with a minimum of 80 per cent in investment grade issuance – primarily in hard currency.

It will also aim to outperform the JPMorgan Emerging Market Bond Index Global Diversified IG. The base share class will be the dollar, but Kames said sterling share classes would also be offered. The B share class will have an annual management charge of 0.65 per cent.

Kames head of fixed income, David Roberts, said there is a growing universe of investment grade debt in emerging markets overlooked due to negative headlines.

“The launch of our fund completes Kames’ set of mainstream fixed income funds. Whilst we have and continue to invest in [emerging market debt] through other funds in our product suite we believe there is now long term demand for this asset class,” he added.