PLEASE NOTE THAT NO PART OF THIS WEBSITE CONSTITUTES AN OFFER OF SECURITIES OR INTERESTS IN ANY FUND OR PORTFOLIO MANAGED BY ABSOLUTE CAPITAL OR ANY OTHER ENTITY.
Absolute Capital offers a variety of capabilities in structured credit investments, designed to meet the evolving needs of institutional investors in Japan.
We also provide industry-leading service to our clients and consultants and build strong relationships and partnerships with our investors.
OUR INVESTMENT PHILOSOPHY
We believe there are opportunities to generate attractive absolute returns from targeted investment in diversified credit assets such as pools of mortgages, asset-backed securities, corporate loans, bonds and receivables portfolios.
We see particular value in junior debt and equity tranches, where investment market dynamics often operate to shift value from senior tranches.
Exploiting the potential value in structured credit requires specialist investment skills and capacities: access to deal flow, collateral credit risk expertise, collateral manager assessment, structural analysis, liquidity management, investment negotiation, asset allocation, and portfolio construction and surveillance.
Absolute Capital has these skills and capacities, and our strategy has proven its robustness in different market environments. Our portfolios are diversified to deliver consistent, attractive returns across market cycles with resilience to volatility in default rates, credit spreads and interest rates.1
SPECIALIST EXPERTISE, GLOBAL SUPPORT
Investors derive significant benefits from a boutique specialist firm that has the alignment of interests and backing of a global financial institution.
Absolute Capital Limited (known as Absolute Capital) is an Australian investment manager and holds an Australian Financial Services Licence (No. 245504). Absolute Capital Limited is a wholly-owned subsidiary of Absolute Capital Group Limited.
The Absolute Capital Group is 50 per cent owned by ABN AMRO Australia Pty Limited, and 50 per cent owned by Absolute Capital Management Holdings Limited (representing the interests of management and staff).
INVESTMENT PRODUCTS
We offer a range of products in the structured credit space as fund offerings with Absolute Capital as the investment manager, as well as structured products that typically have an interest-bearing note available to investors. We can tailor structured credit solutions for institutional investors according to their specific needs and risk/return preferences.
Managed Funds
- Diversified Structured Credit Investment Platform
Our diversified structured credit funds aim to achieve a consistent, competitive yield with a focus on capital preservation, by carefully selecting the best investments in our available universe.
The Absolute Capital Yield Strategies Fund, our flagship fund offering, provides exposure to a diversified selection of globally-sourced structured credit investments. The asset mix is predominantly the junior debt tranches of asset-backed securities (ABS) and managed collateralised debt obligations (CDOs) that provide a level of protection, or cushion, from credit losses in the underlying pools of consumer and corporate loans. CDO equity investments are not a part of this strategy. Targeted returns are in the 7% to 9% range in yen.
- Credit Opportunity Fund Investment Platform
Absolute Capital is investment manager for the Loan Strategies Fund. The fund aims to achieve consistent absolute returns by investing in a range of diversified structured credit strategies overseen by specialist collateral managers. The investment mandate employed by these strategies is typically wider than the rating agency-constrained structure such as a CDO, and allows specialist managers to adjust to changing market conditions and apply their full range of skills and expertise. Targeted returns are in the 7% to 9% range in Yen.
- CDO Equity Investment Platform
This strategy seeks investments that offer significant levels of diversification, high levels of cash flow while preserving capital, and relatively high absolute returns driven by the credit performance of underlying assets such as loans, bonds and mortgages. Targeted returns are in the 12% to 17% range in AUD (11% to 16% in USD).
Absolute Capital has significant experience and expertise investing in this sector of the structured credit markets, dating back to 2001. The Absolute Capital Alternative Debt Fund, an Australian registered managed investment scheme, can invest in the equity tranches of managed collateralised debt obligations (CDOs) and other asset-backed transactions, both in the primary and secondary markets. Absolute Capital is investment manager for a number of other funds, with the same strategy as the above-mentioned fund, which are currently not open to new investors (for example, the CDO Equity Opportunities Fund No.1 and Centravest 101, a segregated portfolio of Cayman Islands-based investment vehicle Centravest SPC).
Structured Products
Our structured products are designed to offer attractive and stable coupon-based returns, backed by portfolios of structured credit investments and funds.
PINs are interest-bearing notes with 100% capital protection at maturity2. There have been two series of PINs offered specifically to New Zealand investors by PINs Securities NZ Limited (PINs 2005-1 with ABN AMRO as protection provider, and PINs 2006-1 with Barclays Capital as protection provider). Absolute Capital is the investment manager.
Further issuance in jurisdictions other than New Zealand is expected in the future.
CONTACT US
Please contact us at info@absolutecapital.com for more information on Absolute Capital and how we can assist you.
1 Please note that past performance is not a reliable indicator of future performance and should not be relied upon when making a decision to invest.
2 Interest payments on PINs are subject to investment risk. There are some circumstances where the capital protection may not apply. The capital invested is not guaranteed. | 
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