Kames Capital has launched a short dated high yield bond fund to be managed by Stephen Baines and David Ennett, supported by Jack Holmes.
It aims to deliver mid-single digit percent per annum returns through the cycle, while maintaining low interest rate and credit sensitivity.
The Kames Short Dated High Yield Global Bond fund has a global remit and adopts a stock picking investment process.
It will invest in the BB and B rated segments of the corporate bond market with a sub two-year duration target.
Baines says: “Our analysis shows that both in periods of deteriorating credit risk and rising government bond yields, short-dated high yield bonds have shown greater price resilience than the broader high yield bond market. They also offer returns that are negatively correlated with government bond market returns.”
The fund is Dublin domiciled and has US Dollars as its base currency, although it also has Sterling, Euro, Swiss Franc and Swedish Krona share classes.