For institutional investors Kapstream offers two main investment strategies, both available to invest in via pooled funds or separately managed segregated portfolios.
The Kapstream Absolute Return Income Strategy is an alternative to conventional fixed income approaches, focusing on capital preservation while maintaining low volatility and daily liquidity to provide stable and consistent income distributions. It invests on an unconstrained basis in a diverse portfolio of predominantly short dated domestic and international investment grade bonds.
The Kapstream Private Debt Strategy is equally concerned with the preservation of capital and low volatility, yet deviates from our flagship strategy by capitalising on the illiquidity premia of senior secured private debt investments, driving still consistent but materially higher income distributions for investors able to sacrifice some portfolio liquidity.
For larger institutional investors Kapstream manages bespoke segregated portfolios within separately managed accounts. These are typically tailored to reflect marginally different risk or return requirements; to include – or avoid – exposure to specific fixed income sectors, or to meet particular exclusion requirements such as those where ESG issue considerations need to be taken into account. For further information and to discuss your own requirements, please contact us.
Kapstream Absolute Return Income Fund
A dedicated institutional share class is available for institutional investors able to take advantage of the benefits of investing through a pooled fund. The Kapstream Absolute Return Income Fund is an open-ended authorised Australian unit trust. The latest performance commentary for institutional investors in the Fund is available here. Interests in the Fund are offered by Fidante Partners Limited who provide a range of administration and distribution services to Kapstream, and are the Responsible Entity for the Fund. By clicking on the links to Fund documents provided below (and elsewhere on Kapstreams website) you will be re-directed to the Fidante website.
Kapstream Private Debt Fund
Private debt has been an asset class often only accessible for those able to invest directly through separately managed segregated portfolios. For a number of investors this may not be a viable option – whether due to scale, diversity, governance, or other factors. The Kapstream Private Debt Fund is an institutional-only, limited capacity, closed-end unregistered Australian unit trust for investors attracted to the high return premia available from private debt investments (when compared to similarly rated traded bonds). To obtain a term sheet and further information please contact us.