Kapstream Absolute Return Income Fund

Performance Summary as at May 2024

The Kapstream Absolute Return Income Fund has a track record of 17 years and has underperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in June 2007, providing investors with an annualised return of 3.97% compared with the benchmark's return of 4.1% over the same period.

On a calendar year basis, the fund has only experienced a negative annual return once in the 17 years since its inception. Over the past 12 months, the fund hasn't had any negative monthly returns and therefore hasn't experienced a drawdown. Over the same period, the index's largest drawdown was -3.35%. Since inception in June 2007, the fund's largest drawdown was -2.59% vs the index's maximum drawdown over the same period of -13.2%. The fund's maximum drawdown began in March 2020 and lasted 8 months, reaching its lowest point during March 2020. The fund had completely recovered its losses by November 2020. During this period, the index's maximum drawdown was -0.42%.

The Manager has delivered these returns with 2.73% less volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 four times over the past five years and which currently sits at 1.08 since inception. The fund has provided positive monthly returns 91% of the time in rising markets and 81% of the time during periods of market decline, contributing to an up-capture ratio since inception of 29% and a down-capture ratio of -29%.