For the first quarter of 2022, the institutional share class for the Axonic Strategic Income Fund returned -1.65% to investors. Through the first quarter of 2022, the Fund has outperformed its benchmark, the Bloomberg Barclays Aggregate Bond Index, by approximately 4.21%. As of the end of March, interest rate duration was 0.9, and the targeted distribution yield was 4.25%. Today, AUM is approximately $1.44 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, Partner and Head of Credit Matthew Weinstein and Partner and Co-Head of Credit Jamshed Engineer. Speakers provided details on how the macro-backdrop is impacting markets, including the war in Ukraine and a possible recession. Speakers also discussed how volatility has influenced asset classes, and where they see opportunities with certain allocation strategies in the current environment.
Moving forward, Axonic Capital will continue to remain nimble relative to portfolio positioning amid volatility. Though a looming recession may pose threats to equity markets, there are still promising opportunities within an inflationary environment, including the structured credit market, which is backed by hard assets to generate cash flow. If you have any questions about the Fund’s performance or asset allocation strategy, please do not hesitate to contact us.