For the second quarter of 2020, the Axonic Strategic Income Fund returned + 4.03% to investors, outperforming its benchmark, the Bloomberg Barclays Aggregate Bond Index, which returned 2.9% over the same period. As of June 30, the Fund held $428 million in AUM. The Fund’s objective is to maximize total return through a combination of current income and capital appreciation.
After Skypoint Capital CEO Brian Smith provided an overview of the Fund’s performance during the quarter, he was joined by Axonic Capital Managing Partner and CIO Clay DeGiacinto, who helped listeners get to know Axonic better by offering insights on the firm’s background and why they are in the mutual fund business. He also provided an overview of structured credit as an asset class, the impacts of the COVID-19 pandemic on the Fund, how Axonic is positioning the portfolio and potential risks going forward.
Some of the other topics covered during this call include:
- How Axonic thinks about risk differently and how this impacts the Fund
- What we are seeing in the institutional investing landscape
- The possible benefits of investing in structured credit as an asset class
- The largest exposure within the Fund right now
- How today’s market compares to past downturns
- Why we don’t need to take a lot of risks and still achieve attractive returns
- Sectors we are currently avoiding and the reasons why
- Asset classes where we see opportunities and have the highest degree of confidence
Here at Axonic Capital, you can be confident that we are always seeking to build alpha and convexity in the Axonic Strategic Income Fund’s portfolio by curating a risk pool in today’s current market. If you have any questions about the Fund’s performance or asset allocation strategy, please do not hesitate to contact us.