Alternative traders, Chi-X Australia, have launched the Chi-X funds market by quoting Fidante Partners’ ActiveX Kapstream Absolute Return Income Fund (Managed Fund).
The arrival of Chi-X funds marked an expansion of the exchange capabilities, enabling issuers to have funds quoted and traded on Chi-X and providing investors with access to a range of new investments.
Vic Jokovic, Chi-X Australia chief executive, said the arrival of Chi-X funds demonstrated the firm’s commitment to innovation and lowering costs for Australian investors.
“The launch of Chi-X Funds is an important step forward for us and is indicative of Chi-X’s growing position within the Australian market,” Jokovic said.
“We are look forward to continuing to broaden our offering with additional issuers over the coming months.”
Steve Goldman, Kapstream managing director and portfolio manager, said the $5.8 billion fund targets two or 2-3% returns above cash.
“It invests predominantly in global corporate bonds with an average ‘A’ rating,” Goldman said.
“Since inception the underlying fund has provided a net return of 4.75% per annum and has been widely used by those seeking a better performing alternative to term deposits, a trend that has accelerated again more recently with falling bank deposit rates.”