Kames to launch Absolute Return Bond fund for Snowden

Kames Capital is launching an absolute return fund for Stephen Snowden and Colin Finlayson, its first new offering since its rebrand from AEGON Asset Management.

The Kames Absolute Return Bond fund, which will be able to invest across the fixed income spectrum, will open to investors later this month and will mark the first new addition to Kames' product range since Snowden joined the company.

Snowden, formerly manager of the then £747m Old Mutual Corporate Bond fund, rejoined Kames Capital earlier this year, having previously left Aegon AM for OMAM in 2004.

Finlayson, who will manage the currency portion of the new offering, has worked in Kames' fixed income team since 2000, specialising in global government bond markets and relative value analysis.

Snowden began co-managing the £243m Investment Grade Bond fund and the $14.8m offshore Investment Grade Global Bond fund with Euan McNeil as of 1 September.

At OMAM, Snowden's Corporate Bond fund suffered heavy losses in 2008 but bounced back in 2009, returning 33.5% against an IMA Corporate Bond sector average of 14.3%, and continued to outperform in 2010 by returning 14.5% against a sector average of 7.6%.

Earlier this week Snowden warned markets are still far from bottoming, adding financials are "not yet cheap enough to warrant the risk" of buying back in.