For the fourth quarter of 2021, the institutional share class return for the Axonic Strategic Income Fund brought +0.73% to investors, bringing the 2021 total return to 6.36%. Throughout calendar year 2021, the Fund outperformed its benchmark, the Bloomberg Barclays Aggregate Bond Index, by more than 7.9%. The Fund’s interest rate duration is .85 and the distribution yield is 4.25%. As of today, AUM is $1.4 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.
Speakers provided details on the biggest macro-themes that influenced portfolio positioning throughout the year, and how persistent inflation might influence asset allocation strategies and opportunistic sectors in the future.
Moving forward, Axonic Capital will continue to monitor the “three bears” of inflation, limited monetary policy space and fiscal policy inertia. Historic examples show that periods of excess inflation could ultimately lead to recession, and this could disrupt equity markets significantly.
Despite a potential upset for risk assets in the future, there are still opportunities in areas that involve hard assets and cash flows. If you have any questions about the Fund’s performance or asset allocation strategy, please do not hesitate to contact us.