AXSIXAXSAX

Prospectus

Primer

YTD Performance

-5.85%
(as of 12/02/2022)

Latest NAV

$8.71
Prior Nav: $8.72
Price Change: $-0.01

AXONIC STRATEGIC INCOME FUND

The Fund seeks to maximize total return, through a combination of current income and capital appreciation. In pursuing its investment objective, the fund seeks to maximize risk-adjusted total returns by investing primarily in income-producing instruments (i.e., under normal circumstances, the fund will invest at least 60% of its net assets in income-producing instruments).

The Fund also may invest in real estate investment trusts (“REIT”), equity securities of companies whose business is substantially related to the mortgage business, and mortgage derivatives such as stripped RMBS and inverse floaters. The fund is non-diversified. Benchmark: Bloomberg US Agg Bond TR USD

Fund Facts

Inception Date
7/16/2020
Ticker
AXSAX
Cusip
05465G200
Management Fee
0.85%
Net Expense Ratio
1.51%
Distribution Accrual
DAILY
Distribution Frequency
MONTHLY
Current Distribution Rate
5.00%
Minimum Investment
$2,500

Expense ratios are based on the Fund’s most recent fiscal year end. The net expense ratio reflects a contractual commitment by the Fund’s investment adviser to waive fees and/or reimburse expenses through 31 Jul 2022. Absent the waiver and/or reimbursement, expenses would be higher and total returns would be less. Please see the prospectus for details.

Performance

Average Annual Total Returns(as of 12/02/2022)
YTD MTD 1 YEAR 3 YEAR CUMULATIVE SINCE INCEPTION
Axonic Strategic Income Fund - A -5.85% 0.01% -5.77% N/A 3.98%
Bloomberg US Aggregate Bond Index 0.00% 0.00% 0.00% 0.00% 0.00%
YTD
MTD
1 YEAR
3 YEAR
CUMULATIVE SINCE INCEPTION

Performance for the Class A shares has not been presented because those shares have not completed a full year of operation as of the date of this prospectus. The Class A shares will have substantially similar annual returns to the Class I shares because the shares are invested in the same portfolio of securities and the annual returns will differ only to the extent that the classes do not have the same expenses.

After-tax returns are calculated using the historical highest individual Federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor’s tax situation and may differ from those shown. After-tax returns are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for Class I shares. After-tax returns for other classes will vary. The table includes all applicable fees and sales charges. All returns reflect reinvestment of all dividend and capital gain distributions.

Fund Characteristics

Total Net Assets
$45
Duration
0.73
Number of Positions
249
Weighted Average Price
$88.36
Portfolio Allocation(as of 10/31/2022)
Cash
25.0%
ABS
15.9%
Opportunistic
12.3%
CMBS/CRE
26.2%
Non-Agency RMBS
20.4%

Literature

Prospectus

Statement of Additional Information

New Account Application

Primer

Annual Report

Semi-Annual Report

Management Team

For more information about our historical performance and examples of investment opportunities, please contact us. Please note this information is only available to accredited investors and qualified purchasers.

This field is for validation purposes and should be left unchanged.

Disclosures

The Fund is classified as “non-diversified” under the 1940 Act. A non-diversified fund is not limited by the 1940 Act with regard to the percentage of its assets that may be invested in the securities of a single issuer. Consequently, the securities of a particular issuer or a small number of issuers may constitute a significant portion of the Fund’s investment portfolio. This may adversely affect the Fund’s performance or subject the Fund’s NAV to greater volatility than that experienced by more diversified investment companies.

Distributions from the Fund’s net investment income are accrued daily and typically paid quarterly. However, there can be no assurances that the Fund will achieve any level of distribution to its Shareholders.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (212) 259-0430 or download the file from www.AxonicFunds.com. Please read the prospectus carefully before you invest.

Residential Mortgage-Backed Securities Risks. Collateral underlying RMBS generally consists of mortgage loans secured by residential real estate or other RMBS. In addition to the risks associated with other asset-backed securities as described above, mortgage-backed securities are subject to the general risks associated with investing in real estate securities; that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In addition, the rate of prepayments on underlying mortgages affects the price and volatility of a mortgage-backed security, and may have the effect of shortening or extending the effective maturity beyond what was anticipated.

REIT Risk. Investments in REITS and in securities of other companies principally engaged in the real estate industry subject the Fund to, among other things, risks similar to those of direct investments in real estate and the real estate industry in general. These include risks related to general and local economic conditions, possible lack of availability of financing and changes in interest rates or property values.

Commercial Mortgage-Backed Securities Risks. Collateral underlying CMBS generally consists of mortgage loans secured by income-producing property or other CMBS. Performance of a commercial mortgage loan and the market value of a commercial property both depend primarily on the net income generated by the underlying mortgaged property and performance of the related business (including property management). As a result, income generation will affect both the likelihood of default and the severity of losses with respect to a commercial mortgage loan. Issues associated with managing a commercial property may impact both performance and market value. The value of commercial real estate is also subject to limitations on remedies imposed by bankruptcy laws and state laws regarding foreclosure and rights of redemption. In addition, the unavailability of real estate financing may lead to default of mortgage loans on commercial properties, and there is no recourse against the borrower’s assets other than the collateral except in the case of borrowers acting fraudulently or otherwise illegally. As a result, payments on the CMBS may be adversely affected in such cases.

Derivatives Risks. Credit derivatives are contracts that transfer price, spread and/or default risks of debt and other instruments from one party to another. Such instruments may be illiquid or less liquid, volatile, difficult to price and leveraged so that small changes in the value of the underlying instruments may produce disproportionate losses to the Fund. In addition, the Fund is subject to the credit risk associated with the underlying assets of a derivatives contract as well as the risk of counterparty default. As a result, the Fund’s use of derivatives could result in losses, which could be significant.

Weighted Average Price. This calculation excludes any assets without a state coupon or allocated principal.

This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission.

Investing involves risks, including loss of principal.

For more information about the funds’ risks, please refer to the AXSIX prospectus and the AAIDX prospectus. Please see the AXSIX fact sheet and AAIDX fact sheet for performance information.

ALPS Distributors, Inc. is the distributor of the Axonic Funds. Axonic Capital LLC and ALPS Distributors, Inc. are not affiliated. ALPS Distributors, Inc., 1290 Broadway, Suite 1000, Denver, CO, 80203

Sign Up for the Latest Insights

This field is for validation purposes and should be left unchanged.