Fund

AXIOMA Leveraged Bond Fund

AXIOMA Leveraged Bond Fund

Performance

August 2023
  • Growth of $1000 invested in B1
  • Monthly net return in %, B1

Period

Performance, per period

Historical volatility p.a.10.29
1M-0.75
3M2.13
YTD3.82
2022-22.30
2021-0.40
202013.60
Since inception p.a.2.74
Period
Performance, per period
1M
-0.75%
3M
2.13%
YTD
3.82%
2022
-22.3%
2021
-0.4%
2020
13.6%
Since inception p.a.
2.74%

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 -34.7%

ICTSI Treasury BV

NR 2.1%

Gazprom PJSC via Gaz Finance PLC

NR 2.1%

Western Alliance Bank

BB+ 2.0%

Mizuho Financial Group Inc

A- 1.9%

Lukoil Capital DAC

NR 1.9%

Allocation August 2023

27% Latin America

13% Middle East / Africa

17% Asia Pasific

7% Developed Europe

17% North America

4% Emerging Europe

14% Russia

1% CIS

Fund details August 2023

AuM 151'621'592.90
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

August 2023

USD denominated bonds across the emerging markets saw a largely negative performance over the month of August. The US treasury yield curve saw an upward shift over August, while at the same time flattening slightly, as long dated yields rose quicker than shorter dated yields. Credit spreads also widened contributing to an overall negative results of bond markets. Our fund performance came in at -0.8%* for August, slightly better than other comparable emerging market funds. The poor performance was mostly driven by a couple adverse occurrences that happened throughout August. Firstly, the US government saw its rating downgraded by Fitch at the beginning of August to a long-term rating of AA+. Secondly, sentiment in August also worsened after the Chinese economy reported deflationary price growth coupled with a struggling real estate market and financial troubles in the country’s “shadow banks” sector. Data released for July came in mostly as expected. The growth in the US Consumer Price Index [CPI] for July came in at 0.2% MoM and 3.2% YoY, with the yearly CPI growth representing a slight uptick when compared to the previous month's growth of 3%. The growth in the Personal Consumption Expenditure Price Index [PCE], the FED’s preferred inflation gauge, came in at 0.2% MoM, and 3.3% YoY. Similarly, the yearly growth in PCE also represented a slight increase when compared with the previous month’s number of also 3%. Inflation has thus far proven to be sticky, with the disinflationary process slowing down. The unemployment rate for July came in at 3.5%, less than the expected 3.6%. Generally, data received for July suggests that the economy remains strong, price growth remains elevated, while the process off disinflation is starting to slow down. Derivative markets, as of the end of August, were pricing in a roughly 50% chance of an additional rate hike this calendar year. Markets continued to price in rate cuts throughout the entirety of 2024. We did not make any changes to our portfolio over August. The leverage of our fund stayed at -34.7%. * Net performance, B1 shares.