Kames Capital is set to launch a short dated high yield bond fund aimed at providing attractive risk adjusted returns, while maintaining low interest rate and credit sensitivity (subject to regulatory approval).
The Kames Short Dated High Yield Global Bond Fund aims to build on Kames’ proven skill set of delivering superior risk-adjusted returns leveraging 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 $2 billion of global high yield mandates and the wider 28 strong fixed income team.
It will have a global remit to maximise its opportunity set and will adopt an investment process that focuses our strong stock picking ability, while aiming to deliver a lower risk strategy with a sub two-year duration target and careful use of the CCC and below segment of the market.
The fund will be managed by Stephen Baines and Ennett, supported by Jack Holmes. It will be Dublin domiciled (subject to regulatory approval) and will have US Dollars as its base currency, although it will also have Sterling, Euro, Swiss Franc and Swedish Krona share classes.
Baines says: ‘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.’