Kames drops performance fee for absolute return fund

Kames Capital will waive the performance fee of the Kames UK Equity Absolute Return fund from April 2 until the end of the year before halving the charge applied.

David Pringle
David Pringle

The £66.7m fund, which is managed by David Griffiths and David Pringle, incurs a performance fee when it outperforms the Bank of England’s base rate.

The performance fee currently stands at 20% of the outperformance over the base rate. After the waiver period ends on January 1, 2013 this will be reduced to 10% of the outperformance.

Kames launched the fund in February 2010. In the year to February 29 it returned 4.71% – while the base rate sat at a historic low of 0.5%. and the IMA Absolute Return sector’s median was 0.52%.

Steve Kenny, head of retail sales at Kames, says: “The fund has got off to an excellent start over its first two years and we believe this incentive will help to continue that momentum.”