Kapstream Absolute Return Income Fund | Kapstream Sovereign Bond Fund

Kapstream Sovereign Bond Fund

The strategy

Sovereign bonds offer low risk exposure to the fixed income market, with high liquidity and a strong income stream.

Our Sovereign Bond Fund is designed to capitalise on this strength, by combining a core holding of sovereign bonds with tactical investments in credit, mortgage and emerging market securities, all AAA-rated and government backed.

Investment objective

Outperform the benchmark over rolling three-year periods.

Investment universe

The fund is limited to government securities within its benchmark and AAA-rated, government backed securities

These securities could include, but are not limited to:

  • Government-guaranteed corporate debt
  • Government agencies
  • Supranational organisations

Minimum suggested timeframe

Three years

Benchmark

Citibank World Government Bond Index (5+ years) hedged in Australian dollars