For the second quarter of 2022, the year-to-date return to investors on the institutional share class for the Axonic Strategic Income Fund was approximately -3.76%. Through the second quarter of 2022, the Fund outperformed its benchmark, the Bloomberg Barclays Aggregate Bond Index, by approximately 6.59%. As of June 30, 2022, the interest rate duration was 1, with a targeted distribution yield of 5%. Today, AUM is approximately $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 how monetary policy continues to impact equity markets amid an aggressive tightening strategy. Speakers also discussed how geopolitical tensions and supply chain issues have contributed to volatility, and where they see opportunities within the current environment.
Moving forward, Axonic Capital will remain cautious with positioning portfolios. Though an inflationary environment may continue to cause some disruption to equity markets, there are still promising opportunities including the structured credit universe, 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.