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 alternative approach to fixed income investing.
Fund Overview
The Kapstream Absolute Return Income Fund (the Fund) aims to balance the interests of capital stability with the generation of consistent and stable income. The Fund is free from conventional benchmarking constraints in sourcing the most compelling fixed income investment opportunities in Australia and around the world, according to Kapstream’s global macroeconomic views.
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Kapstream Absolute Return Income Active ETF (CXA:XKAP)
The Kapstream Absolute Return Income Active ETF (CXA:XKAP) offers investors access to Kapstream’s flagship absolute return fixed income strategy in a listed, liquid ETF structure.
View more detail about the listed fund at Kapstream Absolute Return Income Active ETF.
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Fund Features
Regular income
The Fund aims to provide a steady quarterly income stream
Capital stability
Aims to generate returns above the RBA Cash Rate while minimising downside risk, rather than tracking traditional fixed income indices
Global diversification
A global, diversified portfolio of predominantly investment grade fixed income securities
Unconstrained approach
Investing wherever the best risk-adjusted opportunities can be found irrespective of the benchmark index
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).
Data Source: Fidante Partners Limited
Resources
How to Invest
Before making a decision about whether to make an investment or additional investment in one of our funds please read the Fund’s Target Market Determination (TMD), Product Disclosure Statement (PDS), Additional Information Booklet and Product Updates to ensure the key attributed of the fund as described in the TMD and PDS aligns with your objectives, financial situation and needs.
The Fund is also available as an Active ETF – click here to learn more.
Portfolio Managers
Daniel Siluk
Managing Director & Portfolio Manager
Dylan Bourke
Managing Director & Portfolio Manager
Fund Ratings
The Fund has received a ‘Recommended’ rating — from Lonsec Research and Zenith.
For more information, please read the Ratings Disclaimer.
Latest News & Insights
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’s 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?
Why Fixed Income Has Stopped Being the Boring Part of Your Portfolio
Mark Bayley joins Livewire to discuss how the role of fixed income is shifting, with higher yields and more volatility creating a very different opportunity set for investors
The Warsh Fed: A Change in Style and Substance?
At the helm of his inaugural meeting, Federal Reserve Chairman Kevin Warsh affirmed that the central bank’s attention is squarely focused on price stability while also laying out a reform agenda. Head of Global Short Duration and Liquidity Daniel Siluk elaborates.
*Interests in the Kapstream Absolute Return Income Fund ARSN 124 152 790 are offered by Fidante Partners Limited (ABN 94 002 835 592 AFSL 234 668) (Fidante Partners). Fidante Partners has appointed Kapstream Capital Pty Ltd (ABN 19 122 076 117 AFSL 308870) as the investment manager of the Fund.
