Fund

AXIOMA Leveraged Bond Fund

AXIOMA Leveraged Bond Fund

Performance

May 2025
  • Growth of $1000 invested in B1
  • Monthly net return in %, B1

Period

Performance, per period

Historical volatility p.a.9.88
1M0.89
3M0.16
YTD2.87
20246.84
20234.04
2022-22.34
Since inception p.a.3.27
Period
Performance, per period
1M
0.89%
3M
0.16%
YTD
2.87%
2024
6.84%
2023
4.04%
2022
-22.34%
Since inception p.a.
3.27%

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 -0.1%

Western Alliance Bank

BBB- 3.9%

Promigas SA ESP / Gases del Pacifico SAC

BBB- 2.4%

ICTSI Treasury BV

NR 2.4%

Adani Ports & Special Economic Zone Ltd

BBB- 2.3%

Thaioil Treasury Center Co Ltd

BBB- 2.2%

Allocation May 2025

35% Latin America

10% Developed Europe

19% Asia Pacific

4% Emerging Europe

16% Middle East / Africa

2% CIS

13% North America

0% Russia

Fund details May 2025

AuM 116'614'896.62
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

May 2025

In May, the U.S. Treasury market exhibited considerable volatility, shaped by shifting fiscal expectations, evolving trade policy developments, and central bank signals. The 10-year yield moved within a relatively wide range (4.16%–4.6%), ultimately closing the month higher at 4.4%. Sentiment was swayed by key geopolitical developments, particularly the temporary easing of U.S.-China tariffs and renewed trade dialogue, which helped support markets. Meanwhile, the Federal Reserve reinforced its patient stance, dampening expectations for imminent rate cuts. Optimism grew following tariff de-escalation efforts and softer inflation data, though persistent concerns about the durability of trade agreements and fiscal discipline tempered the broader market tone. The Fund posted a 0.9%* return for May. Economic data for May pointed to a broadly softening backdrop. Inflation continued to ease, with CPI rising just 2.3% year-over-year, the lowest in four years, and PPI falling by 0.5%, its largest drop since 2009. Core CPI remained elevated at 2.8%, but disinflation trends were evident in other measures, including a 0.1% month-over-month rise in both headline and core PCE. Retail sales growth stagnated, and durable goods orders dropped 6.3%, while core capital goods orders fell 1.3%, signaling growing caution in business investment. Revised Q1 GDP showed a modest contraction of -0.2%. Meanwhile, the U.S. House passed a major tax bill expected to significantly widen the fiscal deficit, prompting Moody’s to downgrade the U.S. credit rating. However, the bill is likely to undergo significant changes as it moves through the Senate. We made no new trades in May, apart from processing a minor redemption. Our current investment strategy remains focused on keeping the Fund fully invested. As of the end of the month, the Fund maintained an average duration of 5.3 years and an average yield-to-maturity of 6.61%. * Net performance, B1 shares.