Kames launches high-yield global bond fund

High_yield_bondsEdinburgh-based Kames Capital has launched a high-yield global bond fund, which aims to deliver mid single-digit per cent returns.

It invests in short-dated bonds and has low interest rate and credit sensitivity, the firm said.

Stephen Baines and David Ennett will manage the fund supported by Kames’ five-strong high-yield team including Phil Milburn, head of fixed income investment strategy.

Baines said: “We believe it is beneficial to adopt an active, high conviction approach with a global remit. This allows us to avoid the pitfalls of sector and issuer concentrations that develop from time-to-time within the index.

“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.”

The Kames Short-Dated High-Yield Global Bond Fund is Dublin-domiciled and uses the US dollar as its base currency, although it also has sterling, euro, Swiss franc and Swedish krona share classes.

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