Seeking Income in Uncertain Markets?
Active, global fixed income designed for income and stability.
The Kapstream Absolute Return Income Fund gives advisers access to an actively managed fixed income strategy built for changing market conditions.
When markets are unpredictable, income requires discipline.
For advisers, the search for income is no longer just about yield. Equity market volatility, changing interest rate expectations and shifting credit conditions have made portfolio construction more complex.
In this environment, income allocations need to be actively managed, risk-aware and built to adapt as markets change.
Introducing the Kapstream Absolute Return Income Fund
The Kapstream Absolute Return Income Fund aims to deliver a steady stream of income and medium-term capital stability through an active approach to fixed income investing.
The Fund is free from conventional benchmark constraints, allowing Kapstream to seek attractive fixed income opportunities in Australia and around the world, guided by the team’s global macroeconomic views and credit expertise.
Quick Links
What the Fund Aims to Provide
Regular Income
The Fund aims to provide a steady quarterly income stream
Capital Stability
The Fund aims to generate returns above the RBA Cash Rate while minimising downside risk
Global Diversification
A diversified portfolio of predominantly investment grade fixed income securities across global markets
Unconstrained Approach
The flexibility to invest where Kapstream identifies attractive risk-adjusted opportunities, irrespective of the benchmark index
The Discipline Behind the Fund
Kapstream is a specialist global fixed income manager established in 2007, with A$13.6 bn in funds under management as at 30 June 2026. The team’s investment process is designed to balance income generation, capital preservation and liquidity through changing market conditions.
The process combines:
A Structural Foundation
A long-term portfolio framework designed to target returns above cash while managing volatility and drawdowns
Active Macro Positioning
Rates and credit exposures are actively adjusted as market conditions change
Bottom-up Security Selection
The team assesses issuers, sectors, regions and instruments to identify attractive reward-for-risk opportunities
Risk and Liquidity Management
Portfolio risks are actively managed with a focus on managing drawdowns and maintaining liquidity through different market environments.
Rated by Leading Research Houses
The Kapstream Absolute Return Income Fund has received a Recommended rating from Lonsec and Zenith.
For more information, please read the Ratings Disclaimer.
Fund Characteristics & Performance
Fund Characteristics
| Fund | Kapstream Absolute Return Income Fund |
| Objective | The Fund aims to provide a steady stream of income and capital stability over the medium term while aiming to outperform its benchmark through market cycles. |
| Benchmark | RBA cash rate |
| Inception Date | 31 May 2007 |
| Distribution Frequency | Quarterly |
| Minimum Investment | $10,000 or $1,000 with Regular Savings Plan |
| Management Fee | 0.55% p.a. including GST |
| APIR Code | HOW0052AU |
Performance (after fees) as at 30 June 2026
| Kapstream Absolute Return Income Fund | 1 month | 3 months (%) | CYTD (%) | 1 year (%) | 3 years (% p.a.) | 5 years (% p.a.) | 10 years (% p.a.) | Since inception (% p.a.) | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Fund Return | 30 June 2026 | 0.58 | 1.52 | 2.13 | 5.59 | 6.19 | 3.98 | 3.15 | 4.20 | 3 |
| RBA Cash Rate | 30 June 2026 | 0.37 | 1.04 | 1.98 | 3.84 | 4.11 | 3.07 | 2.06 | 2.89 | 4 |
| Active Return | 30 June 2026 | 0.21 | 0.48 | 0.15 | 1.75 | 2.08 | 0.91 | 1.08 | 1.30 | 5 |
Past performance is not a reliable indicator of future performance.
1 Performance figures are calculated after fees have been deducted and assume distributions have been reinvested. After-fee returns are inclusive of annualised total expenses for Class A Units. Prior to 1 October 2019, management fees and costs were 0.70%. From 1 October 2019 these were reduced to 0.55%. To the extent that the Manager invests in other third party managed funds or ETFs, any fees and expenses of those underlying investments are not included in the management fees quoted and are reflected indirectly through investment performance. Numbers may not add due to rounding. Past performance is not a guarantee of future results.
2 From 1 February 2014 to 30 September 2019, the Fund’s benchmark was a composite benchmark comprising 50% Bloomberg AusBond 0–3 Year Index and 50% Bloomberg AusBond Bank Bill Index. Prior to 1 February 2014, the Fund’s benchmark was the RBA Cash Rate.
3 Active return represents the Fund’s return in excess of its benchmark (RBA Cash Rate).
Fund in Focus
In this short excerpt from Livewire Markets’ Fund in Focus, Dylan Bourke shares how the Kapstream Absolute Return Income Fund is managed with an innovative approach to fixed income, aiming to balance the interests of capital stability with the generation of consistent and stable income.
For Dylan’s full discussion, including his views on inflation, AI-driven investment trends and fixed income markets, watch the complete interview.
Access the Fund
The Fund is available through a range of access points, including online, via platforms and through its Active ETF structure.
Before making an investment decision, read the Fund’s PDS and TMD to ensure the key attributes of the Fund align with your objectives, financial situation and needs.
The Fund is also available as an Active ETF – click here to learn more.
Unlocked by Fidante
Fidante provides access to leading investment strategies managed by specialist investment teams across fixed income, equities and alternatives.
Through Fidante, advisers can access Kapstream’s specialist fixed income capability, supported by the strength, governance and distribution expertise of Fidante and Challenger Group.
For more information about the Kapstream Absolute Return Income Fund, contact Fidante or your local Fidante Business Development Manager.
Telephone:
1300 721 637 (within Australia)
02 8023 5428 (outside of Australia)
Email:
Latest News & Insights
Quick View: The Fed wants 2%; the markets want a plan
Daniel Siluk explains that while the market welcomed Federal Reserve Chairman Kevin Warsh’s stern rhetoric on price stability, the lack of a plan on how that will be achieved led investors to express concern though a sell-off in longer-dated Treasuries.
Ausbiz | Is There an Alternative to the 60/40 Portfolio?
Mark Bayley outlines how escalating Middle East tensions and rising oil prices are rippling through global bond markets.
Ausbiz | Fixed Income Positioning for a Wobbly World
Renewed Middle East tensions put bonds and credit in focus, says Mark Bayley, who sees markets reacting in a relatively contained way so far.
How Kapstream Is Balancing Global Shocks and Fixed Income Yields
Dylan Bourke joined Livewire Markets’ Fund in Focus to explore one of the big questions in markets right now: can the AI investment boom outweigh the inflationary pressure coming from global supply shocks?
This material has been prepared by Kapstream Capital Pty Ltd (ABN 19 122 076 117 AFSL 308870 (Kapstream), the investment manager of the Kapstream Absolute Return Income Fund (Fund). Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante) is a member of the Challenger Limited group of companies (Challenger Group) and is the responsible entity of the Fund. Other than information which is identified as sourced from Fidante in relation to the Fund, Fidante is not responsible for the information in this material, including any statements of opinion. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable to your circumstances. The Fund’s Target Market Determination (TMD) and Product Disclosure Statement (PDS) available at www.fidante.com should be considered before making a decision about whether to buy or hold units in the Fund. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Past performance is not a reliable indicator of future performance. Kapstream and Fidante have entered into arrangements in connection with the distribution and administration of financial products to which this material relates. In connection with those arrangements, Kapstream and Fidante may receive remuneration or other benefits in respect of financial services provided by the parties. Investments in the Fund are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Accordingly, the performance, the repayment of capital or any particular rate of return on your investments are not guaranteed by any member of the Challenger Group.
