Kames High Yield Bond to lift fee to 1.25%

Kames Capital will increase the annual management charge (AMC) of its high-yield bond fund from March next year.

Phil Milburn
Phil Milburn

The £485.4m Kames High Yield Bond fund’s current 1% charge will be lifted to 1.25% to bring it into line with many of its key competitors and to reflect the level of resource applied to its management.

After the AMC of the fund, which is managed by Phil Milburn and Melanie Mitchell, is increased on March 1, all of Kames Capital’s bond funds in the global space will have a similar charging structure.

Steve Kenny, the head of retail sales at Kames Capital, says: “We have made these changes after very careful consideration and following a review into the cost of the research and resources needed to run such a successful fund.”

The move will mean just seven of the 22 funds in the IMA £ High Yield sector have an AMC of 1% or under.

The Aviva Investors High Yield Bond, Axa Pan European High Yield Bond and Baillie Gifford High Yield Bond funds charge 1%, as do the Newton Global High Yield Bond, Legal & General High Income Trust and Baring High Yield Bond funds.

The AMC on the Standard Life Higher Income fund is 0.95%.

To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here.