Kames Capital, formerly Aegon Asset Management, is launching an absolute return bond fund that will invest in debt in any currency, ranging from investment-grade bonds to high-yield and emerging market debt.
The fund will use derivatives to achieve a long-short strategy, for instance selling futures or buying put options.
Colin Finlayson and Stephen Snowden will jointly manage the fund, which aims to provide positive returns over a rolling three to five-year period. The Kames Absolute Return Bond Fund is registered in Dublin and will initially be available in the UK, Ireland and the Channel Islands, with a further rollout in Europe subject to regulatory approvals.
The fund will compete against similar offerings such as the Loomis Sayles Absolute Strategies Bond Fund, which was registered in the UK in March.
Kames Capital is the UK asset management division Aegon, a Scottish insurance company. Aegon changed the name on 1 September to avoid confusion with the insurance business.
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