Kames Capital is to launch a short-dated high yield bond fund which targets returns while maintaining low interest rate and credit sensitivity, the company has announced.
The new fund will have a have a global remit and will have a sub-two year duration. It will invest in the CCC-rated and above segment of the market.
Commenting on the launch, Baines said: ‘We believe that short-dated high yield represents a lower volatility segment of the high yield bond market, and one that has historically offered very attractive risk adjusted returns.
Baines said Kames Capital has long established track record in the high yield market and in using benchmark agnostic strategy.
He added this new approach will combine detailed company-specific credit research with active top down asset allocation.
The fund is domiciled in Ireland and initially for sale in the UK, Germany, Switzerland and Luxembourg subject to regulatory approval.