The Kames Short Dated High Yield Global Bond Fund will be Dublin domiciled, subject to regulatory approval.
It will have US dollars as its base currency, although it will also have sterling, euro, swiss franc and Swedish krona share classes.
Global remit
The fund will have a global remit to maximise its opportunity set and will adopt an investment process that focuses Kames’s stock picking ability, while aiming to deliver a lower risk strategy with a sub two-year duration target and careful use of the CCC-rated and below segment of the market.
It will leverage the expertise of its five-strong high yield team, which includes David Ennett, Kames’ head of high yield and Phil Milburn, head of fixed income investment strategy.
The team is currently responsible for $2bn (£1.6bn, €1.85bn) of global high yield mandates and the wider 28 strong fixed income team.
The fund will be managed by Stephen Baines and Ennett, supported by Jack Holmes.
Lower volatility
Baines said: “We believe that short-dated high yield represents a lower volatility segment of the high yield bond market, and one that has historically offered very attractive risk adjusted returns.
“We have a long established and successful track record in the high yield market, where we have delivered superior risk adjusted returns via a benchmark agnostic strategy which combines detailed company-specific credit research with active top-down asset allocation. This new fund launch is a natural extension of those capabilities.”
