Challenger buys stake in Kapstream
Kumar Palghat
Challenger has taken a 25 per cent stake in Kapstream Capital, a global fixed interest boutique scheduled for launch next year by former Pimco co-head Kumar Palghat.
In addition to its cornerstone investment, Challenger will provide Kapstream with administration services and have sole global distribution rights.
The boutique will primarily focus on securing institutional mandates, but will also offer a fund for the platform and retail market.
It will operate “outside the space traditionally dominated by fixed interest and hedge funds by providing target returns for clients more tailored to their future liability stream”, Palghat said.
“A key differentiator will be our ability to tailor to individual client needs and deliver stable income and alpha generation.”
Recommended for you
The shift in scale and consolidation has led to substantial growth in large privately owned licensees, which have tipped past 20 per cent of advisers for the first time to make up 28.3 per cent of the industry.
ETF providers Betashares and BlackRock are reporting increased flows for currency hedged vehicles, but an adviser has warned on the potential tax implications of changing currency.
Bravura chair Matthew Quinn is to step down later this year, following the exit of CEO Andrew Russell, while its future priority is digital advice in Australia.
Financial advice has an important role to play in navigating family discussions around inheritance, according to CFS, with younger generations expecting a windfall of more than $500,000 while older ones try to meet their retirement needs.
