For the second quarter of 2021, the institutional share class return for the Axonic Strategic Income Fund brought +1.4% to investors, bringing year-to-date returns to +4.42%. Throughout the second quarter, the Fund has outperformed its benchmark, the Bloomberg Barclays Aggregate Bond Index, by more than +6%. The Fund’s current dividend yield is +4.5%; however, effective August 1, it will increase to a +5% dividend yield. As of today, the AUM is $1.1 billion.
After Skypoint Capital CEO Brian Smith provided an overview of the Fund’s performance during the quarter, he was joined by Axonic Capital Director of Research Peter Cecchini, Managing Partner and CIO Clay DeGiacinto and Partner and Head of Credit Matthew Weinstein, who provided details on the biggest macro-themes that may influence portfolio positioning moving forward, current asset allocation strategies and opportunistic sectors.
Moving forward, Axonic Capital will remain vigilant in its goal to deliver convex portfolios for investors. While inflation and the potential evolution of the Delta variant may pose threats to the markets, there are still opportunities that appear promising in various sectors, such as commercial real estate. If you have any questions about the Fund’s performance or asset allocation strategy, please do not hesitate to contact us.