Kames Capital has announced it is launching the Global Equity Market Neutral fund, which will complement the firm’s existing €3.9bn (£2.9bn) equity and fixed income absolute return strategies.
The fund aims to generate a positive absolute return over a rolling three-year period regardless of market conditions, with low levels of volatility and low correlation to underlying markets.
It seeks returns of 1 month GBP Libor +4 per cent per annum net over the three-year period.
The new fund will be run by co-managers Neil Goddin and Craig Bonthron and supported by Malcolm McPartlin within the UK equities team.
Kames Capital head of equities Stephen Adams says: “We are acutely aware of investors’ fundamental focus on capital preservation, especially in current market conditions.
“The new fund enables us to continue to meet this demand from a global perspective, whilst remaining true to our philosophy of providing real market neutral returns.
“The new fund will blend quantitative and fundamental research in a well-defined investment process. It complements our existing absolute return franchise, providing investors with a wide choice of strategies.”