Skypoint Capital began its partnership with Axonic Capital with the launch of the Axonic Strategic Income Fund at the end of December 2019 and was not approved to purchase until April 1, 2020, with $250,000 AUM and amidst the onslaught of the COVID-19 pandemic. Now, at the end of the first quarter of 2021, the Axonic Strategic Income Fund stands at approximately $1 billion AUM. For the quarter, the institutional share class return brought 2.54% to investors. Throughout the past two quarters, the Fund has outperformed its benchmark, the Bloomberg Barclays Aggregate Bond Index, by more than 6%.
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 reflected on the lessons learned from the past year (e.g. how fundamentals are effective in times of market stress) and his outlook moving forward. Also offering insights on the call was Axonic Capital Director of Research Peter Cecchini. Cecchini discussed current paradigm shifts and macro themes and how they may influence portfolio positioning.
Some of the specific topics covered during this call included:
- What data tells us about future Federal Reserve policies
- The role Fed policies play in the Fund’s strategy
- Where we are in the economic cycle and what this means for the markets
- Where the Fund’s inflows and outflows are coming from
- Current asset allocation strategies and opportunistic sectors
If you have any questions about the Fund’s performance or asset allocation strategy, please do not hesitate to contact us.