AXIOMA Leveraged Bond Fund
Performance
February 2024Period
Performance, per period
Historical volatility p.a. | 10.50 |
1M | 0.30 |
3M | 5.30 |
YTD | 1.70 |
2023 | 4.00 |
2022 | -22.30 |
2021 | -0.40 |
Since inception p.a. | 2.80 |
Investment objective
The investment objective of the Fund is to generate attractive risk-adjusted return under prudent investment management with the aim of exploiting inefficiencies in fixed income markets worldwide.
Top 5 issuers | Rating | Weight |
Cash/leverage | -1.7% | |
ICTSI Treasury BV |
NR | 3.1% |
Western Alliance Bank |
BB+ | 2.9% |
Mizuho Financial Group Inc |
A- | 2.8% |
Banco de Credito e Inversiones SA |
A- | 2.4% |
Egypt Government International Bond |
B- | 2.1% |
Allocation February 2024
34% Latin America
8% Developed Europe
21% Asia Pacific
5% Emerging Europe
15% Middle East / Africa
2% CIS
13% North America
0% Russia
Fund details February 2024
AuM | 140'767'963.16 |
ISIN (B1 / B2) | KYG0750S1295 / KYG0750S1378 |
Currency | USD |
Type | Fixed Income, open-ended |
Coupons | Reinvested |
Credit risk | Median (average Fund’s credit rating BBB-) |
Leverage | 0-100% |
Management fee (B1 / B2) | 0.5% p.a. / 0.75% p.a. |
Performance fee | 15%, HWM |
Launch date (B1 / B2) | November 27, 2015 / July 01, 2016 |
Incorporation | Cayman Islands |
Investment manager | AXIOMA Wealth Management AG (Switzerland) |
Custodian/prime-broker | Credit Suisse AG (BBB) (Switzerland) |
Administrator | Apex Fund Services (Malta) |
Valuation | Monthly |
Minimum subscription | $100’000 |
Subscription/Redemption | Monthly, 5 BD notice |
Target return | 4-6% p.a. |
Commentary
February 2024February came through as a relatively positive month for bonds. Over the period of February, the treasury yield curve experienced an upward shift in yields, particularly at the medium tenor end of the curve. Credit spreads tightened moderately over the same period, providing grounds for positive performance of the high yield segment. At the same time the investment grade segment registered a negative performance over the same period. Our fund showed a positive performance of 0.3%* over February. Data released in February came in mixed. The growth in the US Consumer Price Index [CPI] for January came in at 0.3% MoM and 3.1% YoY, with the former coming in 10 basis points higher than expected, while the latter coming in 20 basis points higher than expected. The growth in the Personal Consumption Expenditure Price Index [PCE], the FED’s preferred inflation gauge, came in at 0.3% MoM, and 2.4% YoY for the same period of January. Both numbers came in as expected. The unemployment rate for January came in at 3.7%, lower than the anticipated 3.8%. Generally, data received for January suggests that the economy remains strong, while price growth still remains elevated. Derivative markets, as of the end of February, were pricing in roughly 100 basis points worth of rate cuts throughout 2024. Throughout February we continued selling non-Russian bonds with limited upside as part of our leverage reduction strategy. On the Russian front, we managed to sell our entire position in Gazprom, thus practically finishing the disposal of Russian non-sanctioned bonds. The leverage of our fund decreased further to -1.7%. * Net performance, B1 shares.