Bestinvest says
Whilst the fund is managed from Kames UK office, the process will also leverage off the expertise of parent company Aegon's US and European operations to provide input on security selection. Kames offer a strong suite of fixed income products; this is essentially their best ideas fund, relative to other peer group funds this is a more focused offering.
The fund invests in global debt instruments, primarily publicly traded bonds, denominated in dollars, sterling or euros. The fund will consist of high conviction ideas with positions in individual issuers averaging between 2-2.5% for investment grade and 1-1.25% for higher yield corporate bond. To determine the top down construction of the fund Roberts draws on the views of Kames international bond departments via a formal monthly asset allocation meeting. Individual securities are taken from a template of best ideas submitted by the head of the respective fixed income assets classes. Whilst the fund mandate allows for an open currency position of up to 30%, this is not expected to be a major source of returns. Unhedged exposure to the funds base currency is unlikely to exceed 5% of NAV.