The Axonic Strategic Income Fund (“the Fund”) seeks to maximize total return through a
combination of current income and capital appreciation. The Fund’s goal is to invest primarily in
income-producing instruments such as non-agency residential mortgage-back securities
(“RMBS”), commercial mortgage-backed securities (CMBS), commercial real estate (“CRE”)
loans, and other asset-backed securities (“ABS”).
Axonic Capital’s Robert Duggan, Clayton DeGiacinto and Matthew Weinstein hosted a special
call following the Morgan Stanley platform launch. During this call, Duggan offered Morgan
Stanley capital allocators insight into:
- An overview of Axonic Capital and the Fund
- The experienced team behind the Fund
- How Axonic came to be and how it has evolved since its founding
- Similarities between today and 2009 in regard to opportunities within the sector
- What differentiates the structured credit universe from a more generalist approach
- Why structured credit has been historically under-owned by average investors
- Some misconceptions investors have about CMBS and how Axonic’s approach to the
market is different
- Potential opportunities within the CMBS sector moving forward
- How a housing slowdown may impact Axonic’s approach to the RMBS sector
- The Fund’s performance and how it was able to achieve these returns
- How Axonic differs from other liquid structured funds
Overall, Axonic believes that the Fund is a great diversification tool for investors and a way to
achieve an attractive yield in times of equity market uncertainty and volatility. If you have any
questions about the Fund’s performance or asset allocation strategy, please do not hesitate to
This recording is for Institutional Communication Use Only.
The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (212) 259-0430 or download the file from www.AxonicFunds.com. Please read the prospectus carefully before you invest.
As of January 31, 2023, The Axonic Strategic Income Fund (AXSIX) has a MTD return of 1.58%, a 1-year return of -3.77%, a 3-year return of 0.75% and a 2.26% cumulative return since inception.
Past performance does not guarantee future results. Investment returns, and principal value of the Fund will fluctuate so that shares may be worth more or less than their original cost. Current performance may be higher or lower than the performance data quoted above. For current performance information, please call 816-843-7623.
Total annual fund operating expense is for the I shares is 1.05% gross and 1.05% net; A shares is 1.64% gross and 1.51% net. The Fund’s investment adviser, Axonic Capital LLC (the “Adviser”) has entered into an Expense Limitation Agreement with the Fund under which it has contractually agreed to waive Management Fees and to assume other expenses of the Fund, if necessary, in an amount that limits annual operating expenses to not more than 1.10% of average daily net assets. The Expense Limitation Agreement is currently in effect until December 31, 2023.
Investing involves risk, including loss of principal.
The Fund is classified as “non-diversified” under the 1940 Act. A non-diversified fund is not limited by the 1940 Act with regard to the percentage of its assets that may be invested in the securities of a single issuer. Consequently, the securities of a particular issuer or a small number of issuers may constitute a significant portion of the Fund’s investment portfolio. This may adversely affect the Fund’s performance or subject the Fund’s NAV to greater volatility than that experienced by more diversified investment companies.
Distributions from the Fund’s net investment income are accrued daily and typically paid quarterly. However, there can be no assurances that the Fund will achieve any level of distribution to its Shareholders.
ALPS Distributors, Inc. is the distributor of the Axonic Strategic Income Fund (ALPS Distributors, Inc. 1290 Broadway, Suite 1000, Denver, CO 80203). Axonic Capital LLC (the Fund’s adviser), ALPS Distributors, Inc., and BNY Mellon are not affiliated.