Fund

AXIOMA Leveraged Bond Fund

AXIOMA Leveraged Bond Fund

Performance

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

Period

Performance, per period

Historical volatility p.a.10.50
1M1.60
3M-1.60
YTD1.90
2022-22.30
2021-0.40
202013.60
Since inception p.a.2.60
Period
Performance, per period
1M
1.6%
3M
-1.6%
YTD
1.9%
2022
-22.3%
2021
-0.4%
2020
13.6%
Since inception p.a.
2.6%

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 -43.5%

Lukoil International Finance BV

NR 2.4%

Polyus Finance PLC

NR 2.1%

Gazprom PJSC via Gaz Finance PLC

NR 2.0%

ICTSI Treasury BV

NR 2.0%

Mizuho Financial Group Inc

A- 1.8%

Allocation April 2023

27% Latin America

12% Middle East / Africa

17% Asia Pasific

7% Developed Europe

16% North America

4% Emerging Europe

16% Russia

1% CIS

Fund details April 2023

AuM 151'955'521.48
ISIN (B1 / B2) KYG0750S1295 / KYG0750S1378
Currency USD
Type Fixed Income, open-ended
Coupons Reinvested
Credit risk Medium (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

April 2023

April was a positive month for our portfolio and credit markets in general. The US treasury yield curve saw further inversion occur throughout the month of April, as market participants began to price in an additional 25 basis point hike in the FED funds rate. Credit spreads tightened slightly over the period of April. Following the hike in the FED funds rate in early May, markets now expect rate cuts throughout the entirety of the year. Although the total risk appetite was not very strong over the month of April, some positions in our portfolio nevertheless saw price appreciation. Over April, our fund saw several large bond redemptions, namely, VEON, Lukoil and PhosAgro. The funds from VEON have already been received, while the redemption funds from PhosAgro and Lukoil have been sent by the issuers to their respective clearing banks, and we are still awaiting the funds to be transferred to our custodian. As these bonds were trading significantly below par, we have registered a significant price upside for these positions. Our fund showed a total performance of 1.6%* for the month of April. The data on inflation for March came in mostly better than expected. The growth in the US Consumer Price Index [CPI] came in at 0.1% MoM and 5% YoY, which represents a significant decrease in both numbers compared to the previous month. Both numbers also came in lower than expected. The growth in the Personal Consumption Expenditure Price Index, the FED’s preferred inflation gauge, came in at 0.1% MoM and 4.2% YoY for the month of March. Both numbers came in significantly lower than in the previous month and mostly in line with expectation. The unemployment rate for the month of March came in at 3.5%, better than expected. Data received in April continues to suggest that the US economy is strong and price growth remains elevated, albeit the process of disinflation is continuing. The bank failures have thus far yet shown to have had any material impact to the US aggregate economy. We have continued to use current market conditions to sell short to medium-term bonds with low upside, thus lowering our leverage down to -43.5%. * Net performance, B1 shares.