Kapstream Absolute Return Income Fund

Performance Summary as at March 2024

The Kapstream Absolute Return Income Fund has a track record of 16 years and 10 months and has underperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in June 2007, providing investors with an annualised return of 3.96% compared with the benchmark's return of 4.24% over the same period.

On a calendar year basis, the fund has only experienced a negative annual return once in the 16 years and 10 months 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 -5.2%. 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 2.7% 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 80% of the time during periods of market decline, contributing to an up-capture ratio since inception of 28% and a down-capture ratio of -30%.