Headed by David Griffiths and David Pringle, managers of Kames’ existing UK Equity Absolute Return Fund, alongside Malcolm McPartlin, Equity Market Neutral Fund will target cash plus 4% over 36 months in all market conditions.
To be introduced in November, the fund will typically hold 50 to 100 equity asset positions.
Also to launch in November, and run by the same trio, Kames Equity Market Neutral Plus will aim to generate a return of cash plus 8%, again in all market conditions over a 36 month rolling term.
Both new funds will be available in sterling, Swiss franc, euro and US dollar share classes.
Kames currently runs £750m in its two absolute return strategies, the aforementioned UK Equity Absolute Return Fund, launched in 2010, and Absolute Return Bond Fund, which has just celebrated its third anniversary.
“We are seeing some real traction within our existing absolute return strategies as investors appreciate our genuine market neutral returns and these investors and our European clients are now asking for us to replicate these strategies but with the potential for greater returns on their capital,” said Kames’ chief investment officer Stephen Jones.
“We believe these two funds meet this demand whilst remaining true to our absolute philosophy of providing real market neutral returns.”
