For institutional investors

Kapstream has worked on behalf of a predominantly institutional client base since establishment in 2006. Today, more than 50 of Australia’s largest institutional investors – comprising superannuation funds, government entities, insurance companies, multi-managers, family offices, endowments and charities – entrust us with the management of their assets.

At Kapstream’s core is an unwavering focus on avoiding capital erosion and on the provision of stable, consistent returns delivered with low volatility. Kapstream’s three principal investment strategies available to institutional investors share these common characteristics and follow an active, benchmark-agnostic approach targeting absolute returns above cash.

  • The flagship Kapstream Absolute Return Income Fund offers investors an alternative to conventional fixed income approaches, with combined objectives of preserving capital and maintaining constant, daily liquidity while seeking an absolute return of 2-3% above cash. The strategy invests actively in a diverse portfolio of predominantly shorter maturity domestic and international investment grade bonds. The latest performance commentary for institutional investors in the Fund is available here, with other Fund documents provided below.
  • The Kapstream Absolute Return Income Plus Fund is a higher performance variant of Kapstream’s flagship, targeting an absolute return of 3-4% above cash. Still offering constant, daily liquidity, the strategy is suited to investors who are comfortable with modestly higher volatility. The strategy has high commonality with Kapstream’s flagship strategy, and derives its extra return predominantly by having a larger allocation to higher yielding sectors. The latest performance commentary for institutional investors in the Fund is available here, and to find out more please contact us.
  • The Kapstream Private Investment Fund shares the same objectives of avoiding capital erosion and the provision of consistent returns delivered with low volatility, and also has in common a focus on shorter maturity investments, but differs in its approach of seeking to capture the rich illiquidity return premia that exists in private debt, specifically the pre-public securitised market or what’s often termed ‘warehouse financing’. The Fund is available only for wholesale investors able to allocate to more illiquid investments, and targets an absolute return of 6% above cash. The Information Memorandum including an application form for the Fund is available here, and for further information please contact us.

Segregated Portfolios

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.

Important Information

Before making a decision about whether to make an investment in any fund, please read the relevant Target Market Determination (TMD) and Product Disclosure Statement (PDS) (including all incorporated information) or other offer documents to ensure the features of the funds as described align with your objectives, financial situation and needs.

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The global absolute return fixed income specialist.