Axonic Investor Update Q3 2023 Replay

The Axonic Strategic Income Fund’s quarterly investor call provided a comprehensive update on its year-to-date performance. Throughout August 2023, the institutional share class (AXSIX) yielded 0.74%, contributing to a year-to-date return of 5.25%. As of September 6th, the fund now has a distribution yield of 6.5%.  This performance places the fund in the 13th percentile within Morningstar’s multi-sector bond category. Over a three-year period, concluding August 2023, the Fund stands impressively within the fourth percentile of the same category, underscoring its consistent performance. Notably, the fund’s assets under management (AUM) have surged past 1.6 billion USD, reflecting investor confidence and trust in the fund’s strategies.

The discussions during the call shed light on various aspects of the Fund’s performance and strategies. Pete Cecchini, Axonic’s Director of Research and head of macro strategy, emphasized a significant shift in the long-term secular trend of interest rates, predicting its implications and the need for re-normalization of the treasury curve. This insight into the changing rates regime and its potential consequences offers valuable perspectives for portfolio positioning and asset allocation. Furthermore, discussions touched upon the anticipated economic trends and how the fund is strategically positioned to capitalize on market dynamics, as the economy evolves.

Clayton DeGiacinto, Managing Partner and CIO of Axonic, discussed the current opportunity set in structured credit, reporting positive performance for fixed-income and credit funds during Q1, and showcasing AXSIX’s growth of +1.96%. Additionally, he gave an overview of the fund’s portfolio allocation, highlighting the strategically small exposure to office.  The discussion further underscored the diversified nature of the fund’s portfolio, their potential to offer a higher-yielding, lower duration exposure—a strategy aligned with the Fund’s overall mission and investment approach.

Ben Bernstein, Portfolio Manager, shared valuable insights into the Fund’s approach to the residential side of securitized products and dove into how Axonic currently looks at the space. He highlighted how the team’s deep credit analytics provides an edge, translating well into going deeper than the market in the capital stack. Using examples in Non-QM, Legacy RMBS, and RTL, Ben showcased the distinct expertise and readiness to capitalize on emerging opportunities highlighting the Fund’s dynamic and informed decision-making, guided by a deep understanding of the market.

The Axonic Strategic Income Fund’s investor call served as an insightful platform to assess the Fund’s performance and strategic outlook. The discussion emphasized the Fund’s positioning in the investment landscape, particularly within the multi-sector bond category. The team’s expertise, strategic approach and readiness to adapt to evolving market trends were evident, reaffirming their commitment to delivering consistent, attractive risk-adjusted returns to investors. For any queries or further discussions regarding the fund’s performance and strategies, stakeholders are encouraged to reach out, fostering an ongoing dialogue.

If you have any questions about the Fund’s performance or asset allocation strategy, please do not hesitate to contact us at

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