Kames launches Global Sustainable Equity Fund
Kames Capital is looking to build upon its multi-award winning responsible investment expertise with the launch of the Kames Global Sustainable Equity Fund.
Kames, which is recognised as one of the UK’s leaders in ethical investing, is planning to launch the Dublin based sustainable fund later this month, subject to regulatory approval. The fund will then be passported into Kames’ key European markets including Austria, Germany, Italy, Spain, Sweden, Switzerland and the UK, again subject to regulatory approval.
The Kames Global Sustainable Equity Fund will leverage the firm’s existing corporate governance capabilities with its global equities expertise to identify potential investments for the fund, which will be managed by Craig Bonthron and Neil Goddin, supported by Ryan Smith, head of governance and ethical research at Kames.
Kames currently manages £2.3 billion (€2.8 billion) in specialist ethical funds and has won numerous awards for its capabilities in this area. The new fund will apply Kames’ proprietary sustainability screen; a blend of analysis specifically focusing on Environmental, Social and Governance (ESG) considerations, together with a limited number of sector or issue exclusions (negative screens) which are considered contrary to the principles of sustainable investing e.g. tobacco. Sustainability will be explicitly integrated into fundamental investment considerations and directly influence position size and ultimately the long-term performance of the fund.
The high-conviction fund will typically invest in a portfolio of 35-45 stocks which meet the standards of both Kames’ in-depth sustainability research process and successful fundamental investment process. Both quantitative and qualitative research will be used to capture not just the sustainability ‘leaders’, those companies with exemplary sustainability credentials, but also the ‘improvers’. Kames’ believes there is a strong correlation between companies which improve their sustainability performance and positive share-price performance.
Net of 0.75% p.a. fees, the fund will aim to outperform the MSCI All Country World Index Total Return index by 3% over a rolling 36-month period. The ‘B’ share class will have an annual management charge of 0.75%.
Kames Capital’s head of equities Stephen Adams says: “Kames has award winning credentials in responsible investing and we are seen as one of the UK’s leading providers in this market. The launch of the Kames Global Sustainable Equity Fund builds on this successful franchise by leveraging our existing capabilities in this area with the expertise we have in the global equity market. By combining these two strengths we can broaden our range into the wider sustainability market.”
The Kames Global Sustainable Equity Fund will be Dublin domiciled and available in the UK, Austria, Belgium, Germany, Guernsey, Ireland, Italy, Jersey, Luxembourg, Malta, Netherlands, Spain, Sweden and Switzerland.