Kames Capital, a UK-based investment manager, has bolstered its absolute return fund range by introducing a new market neutral fund aimed at institutional and wholesale investors in Europe.
The new Kames Global Equity Market Neutral Fund will seek a positive absolute return over rolling three-year periods, offer lower volatility than government bonds, and have very low correlation to underlying markets.
"The risk profile is consistent with investors seeking returns of 1 Month GBP LIBOR +4% per annum net-of-fees over a rolling three year period," Kames said.
The new proposition will be managed by co-managers Neil Goddin and Craig Bonthron, and supported by Malcolm McPartlin within the UK equities team.
It will be available in the UK, Austria, Belgium, Germany, Guernsey, Ireland, Italy, Jersey, Luxembourg, Malta, the Netherlands, Spain, Sweden and Switzerland. Its base currency is sterling, and will also be available in euro, US dollar, Swedish krona and Swiss franc share classes will also be available.
Kames Capital head of equities Stephen Adams said: "We are acutely aware of investors’ fundamental focus on capital preservation, especially in current market conditions. The new fund enables us to continue to meet this demand from a global perspective, whilst remaining true to our philosophy of providing real market neutral returns.
"The new fund will blend quantitative and fundamental research in a well-defined investment process. It complements our existing absolute return franchise, providing investors with a wide choice of strategies."