Kames Capital is to prevent “big and unexpected investments” in its three equity market neutral funds because of capacity concerns.
The fund house said it had carried out a “thorough review” of capacity on its £587m UK Equity Absolute Return, £202m Equity Market Neutral and £133m Equity Market Neutral Plus funds, resulting in a decision to manage flows.
“We have undertaken a thorough review of the strategy’s capacity and now feel it is appropriate to take prudent, preemptive measures to stem any big and unexpected investments into the strategy,” a company statement said.
Kames said all three products would now be subject to ongoing reviews, but emphasised it had not yet sought to increase initial charges in order to soft close the portfolios.
“While it is important to highlight we are looking to manage flows, this is not a soft closure announcement,” the statement said.
“The funds will remain open, and we will continue to accept regular flows. However, we have decided to contact investors so that we can manage any future new flows into the strategy.”
