Launched yesterday, the Kames Equity Market Neutral Fund and Kames Equity Market Neutral Plus offer investors a wider choice of strategies.
The new Dublin-domiciled funds will be managed by David Griffiths and David Pringle who currently run the Kames UK Equity Absolute Return Fund, and investment manager Malcolm McPartlin.
Over a three year rolling period, the Kames Equity Market Neutral Plus Fund generates a return of cash plus 4% in all market conditions, and will typically hold 50 to 100 equity asset positions.
Meanwhile, the Kames Equity Market Neutral Plus Fund aims to get a return of cash plus 8% in all market conditions over the same three year period.
The funds are available in sterling, swiss franc, euro and US dollar share classes and will be registered for sale in the UK and the Channel Islands after their launch in Ireland.
The Kames UK Equity Absolute Return Fund has returned 21% since it launched in February 2010.
Kames Capital’s chief investment officer Stephen Jones said: “Our genuine market neutral returns are appreciated by investors in both the UK and Europe, and they are now asking for us to replicate these strategies but with the potential for greater returns on their capital.
“We believe these two funds meet this demand whilst remaining true to our absolute philosophy of providing real market neutral returns.”
The minimum investment for the Kames Equity Market Neutral Fund, which sits in the B share class, is £500 with regular tops of at least £50 a month. There is no initial fee or performance fee, but an annual charge of 0.85%.
The minimum investment for the Kames Equity Market Neutral Plus Fund, which also sits in the B share class, is £2m. It has a 1.25% annual charge, and although it has no initial fee, it does have a performance fee, which it is 15% above the HWM (high water mark) and Hurdle (which is benchmark of LIBOR GBP).
Both funds are seeded with £37.5m.
