Fund

AXIOMA Leveraged Bond Fund

AXIOMA Leveraged Bond Fund

Performance

May 2022
  • Growth of $1000 invested in B1
  • Monthly net return in %, B1

Period

Performance, per period

Historical volatility p.a.9.60
1M0.50
3M-14.10
YTD-27.30
2021-0.40
202013.60
201912.20
Since inception p.a.1.60
Period
Performance, per period
1M
0.5%
3M
-14.1%
YTD
-27.3%
2021
-0.4%
2020
13.6%
2019
12.2%
Since inception p.a.
1.6%

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.

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 -62.3%

Hyundai Capital America

BBB+ 1.9%

Western Alliance Bank

BBB 1.9%

International Container Terminal

NR 1.8%

BP Capital Markets

A- 1.7%

Scotiabank Peru SAA

BBB 1.7%

Allocation May 2022

29% Latin America

8% Russia

19% North America

8% Developed Europe

17% Asia Pacific

5% Emerging Europe

12% Middle East / Africa

2% CIS

Fund details May 2022

AuM 147’246’042
ISIN (B1 / B2) KYG0750S1295 / KYG0750S1378
Currency USD
Type Fixed Income, open-ended
Coupons Reinvested
Credit risk Medium (average Fund’s credit rating BBB-/BB+)
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

May 2022

May was marked by shifts in the markets’ sentiment: from anticipating central banks’ hawkish stance to optimism about inflation reaching the peak, which later switched to worries about the inflation outlook brought by the recent inflation data publication. Nevertheless, during the month Russian bonds’ overall value slightly increased. As a result, our fund achieved a positive performance* of +0.5%. in May. The much-awaited FOMC meeting, which took place at the beginning of the month, and its minutes released later was less hawkish than what markets expected. No hikes of 75 bp were mentioned. On the contrary, Fed’s Chair shed light on such narratives by clarifying that the policymakers were not considering them. What improved markets’ sentiment after the release of the FOMC meeting minutes was the clear indication that the Fed’s further actions would depend on the data, which, important to note, depicted signs of a slowing economy. Regarding inflation, April data showed that core PCE (Fed’s favorite gauge of inflation) grew 4.9% year-over-year and 0.3% month-over-month, but both values came lower than they would previously. Hence the expectations that inflation might have peaked were fueled further. By the end of the month, markets started pricing in lower inflation expectations, assuming it is somewhere near its highest level. It was believed that a peak was also reached for UST benchmark 10-year yields. Strict Chinese Covid measures that affected industrial production and global supply chains were gradually eased towards the end of May. However, in general, the situation has not improved, especially given the very recent tightening of measures in the major cities of Shanghai and Beijing. Geopolitical instability persists, and supply chains are strained. Hence, while monitoring all political, macroeconomic, and financial developments, we are focused on updating and optimizing our selected bond universe. Our fund closed the month of May with an average duration of 5.7 years, an average yield-to-worst of 8.8%, and leverage at 62.4%.