Kames Capital head of fixed income David Roberts says the firm is considering broadening its fixed income range, eyeing possible launch of a number of funds over the next few years.
Roberts highlights various potential opportunities for the Kames business going forward to add to its existing strengths in fixed income through product development.
He looks across the asset manager’s current fixed income funds, pointing to a number of areas in which there is potential to expand the range over the next three years through the possible introduction of new funds.
He says: “One things that we would consider doing which we don’t have in our mutual fund range at the moment is a pure rates, probably quite aggressive, government bond portfolio. Not a gilt fund, but a fund that can effectively buy high-quality government bonds around the world.”
Roberts also adds that the “prime area” that Kames could expand into falls under “exotic” assets, which he describes as being “at the cusp of fixed income markets”.
He says: “Really the prime area that we see as something that we could expand into we have labeled as ‘exotics’.
”Emerging markets, loans and asset backed securities, all of the slightly more specialist things that appeals in a low yield environment but has not perhaps been at the top of the sales charts when we look back at what clients have been buying over the last decade or so.”
At the same time Roberts addresses the asset manager’s existing funds, mainly investment grade and strategic bonds, where he believes the product range is largely sufficient with little scope for expansion.
He says: “We have two strategic bond funds plus the absolute return fund: three funds that do a lot of stuff, so do we really need a fourth?
“Likewise in investment grade we have four funds already. It is possible we might do something else but again we have got good coverage there”.
However Roberts stresses that these are opportunities that the team is looking at, with none of the fund launches being imminent.
Kames chief investment officer Stephen Jones also reinforced support for future developments in fixed income. He says: “David has the full endorsement of the management committee and the Kames board to pursue these ambitions.”