It will invest a minimum of 80% of its assets in emerging market bonds and hold a minimum of 80% in investment grade bonds.
The fund, managed by Scott Fleming with Alex Pelteshki as support manager, will be domiciled in Dublin and will be available in the UK, Austria, Belgium, Germany, Guernsey, Ireland, Italy, Jersey, Luxembourg, Malta, Spain and Switzerland.
The company says that the EMB Fund launch complements Kames Capital’s existing range of fixed income funds and means the firm is now well placed to offer its investors a solution to all of their fixed income requirements.
The Kames Emerging Market Bond Fund will aim to outperform the JPM Emerging Market Bond Index Global Diversified IG. Its base share class will be in US Dollar, but there will also be Euro and Sterling share classes. The ‘B’ share class will have an annual management charge of 0.65%.
Kames’ head of fixed income David Roberts said: “Dislocation in EM continues as investors seek clarity of US interest rate policy.
“Currently all the headlines on EM inevitably focus on the negative stories about a crisis or defaults as cash flows out of the asset class. Looking beneath those headlines, there is a growing universe of solid investment grade EM issuers which are overlooked. Our fund intends to exploit those opportunities.
“The launch of our EMB fund completes Kames’ set of mainstream fixed income funds. While we have and continue to invest in EMB through other funds in our product suite we believe there is now long term demand for this asset class and we want to allow investors access to Kames’ expertise in this space.”