Kames Capital rebrands multi-asset fund
Kames Capital plans to rebrand its Inflation Linked Fund as the Kames Diversified Growth Fund.
The global multi-asset fund, managed by Colin Dryburgh and Scott Jamieson, takes a best ideas approach to asset allocation and stock selection across a wide range of assets, including equities, bonds and alternatives. It aims to deliver a total return of at least UK RPI +4% per annum over the medium term, with between half and two-thirds of global equity market volatility.
The move to rebrand the fund, which is subject to regulatory approval, aims to better reflect the fund’s underlying strategy, to help investors to better understand its objectives and help them position it relative to its competitors. The new name is expected to take effect as of 27 April 2015.
Dryburgh says: ‘The fund is currently positioned with a strong exposure to equities, implemented through companies that have a proven record of delivering strong dividends. We also have a currency-hedged position in Japanese equities, where economic policy is supportive of corporate profitability. Our bond portfolio includes exposure to currency-hedged Australian 10-year bonds, where we expect lower interest rates as investment levels in the mining sector collapse. We also maintain a healthy exposure to alternative investments, which offer attractive risk/return characteristics and enhance portfolio diversification. Our currency allocation continues to favour the US dollar, which we expect to benefit from the policy polarisation between the US and the rest of the world.’
Jamieson who is also head of multi-asset investing at Kames, says: ‘We have been running the current strategy for the fund since September 2013, and it has been one of the top-performing diversified growth funds available to UK investors. It delivered a total return of 9.98% in 2014 and has begun 2015 strongly, returning 5.49% in the first three months of the year after all fees*. We have benefitted from a broad range of performance drivers, including successful positions in longer-duration US bonds, Japanese equities, dividend-themed equities and a currency tilt favouring the US dollar. We have also profited from holding alternative investments in areas such as infrastructure, asset leasing, renewable energy and listed property.’