Fund reaches $1 billion in AUM in only 17 months

The Axonic Strategic Income Fund, launched in late 2019 to capitalize on opportunities and potential market dislocations across structured credit, has crossed $1.0B in assets under management (AUM). The Fund is managed by Axonic Capital, a veteran owned New York-based structured credit specialist with $4.0B in assets under management.

Since the official launch of the Fund on December 30, 2019, AXSIX has seen over $1.0B in new inflows in just 17 months. “In our opinion strengthening credit fundamentals post COVID-19 and strong technical factors continued to work together to create an attractive source of risk-adjusted return in the structured credit market," says Axonic Founder and Chief Investment Officer, Clay DeGiacinto. He further added, “We believe this to be a great diversifier within a portfolio, Axonic believes opportunities within the residential mortgage backed securities, commercial mortgage backed securities and asset backed securities are particularly well-suited for this market. The relative value in these sectors, combined with our exceptional team of investment professionals, makes this a very exciting time for the firm.”

The fund is marketed by Atlanta-based, Skypoint Capital (“Skypoint”). Founder and Managing Partner, Eric Anderson added, “The challenges presented by COVID-19 and the fund’s relative performance since April 2020, speaks volumes to the experience and expertise of the Axonic team. Their ability to react and find attractive value across all segments of structured credit helps separate them from other funds.”

AXSIX, AXSAX is available for purchase both directly and on most major broker-dealer platforms (Schwab, Fidelity, TD Ameritrade, and Pershing).

About the Fund:

The Fund seeks to maximize total return, through a combination of current income and capital appreciation. In pursuing its investment objective, the Fund seeks to maximize risk-adjusted total returns by investing primarily in income-producing instruments (i.e. under normal circumstances, the Fund will invest at least 60% of its net assets in income-producing instruments). These instruments may include: (i) mortgage-backed securities (“MBS”), including agency and non-agency residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”); (ii) other asset-backed securities (“ABS”) and structured credit instruments, including instruments representing the ownership and cashflows from or financing of various assets, including aircraft, collateralized debt obligations (“CDOs”), collateralized loan obligations (“CLOs”) and collateralized mortgage obligations (“CMOs”); and (iii) other income-producing investments, including corporate and bank-issued bonds, loans and participations, and instruments representing the ownership and cashflows from or financing of various assets, including aircraft and intellectual property royalties. The Fund also may invest in real estate investment trusts (“REIT”), equity securities of companies whose business is substantially related to the mortgage business (e.g., title, financial guaranty and other insurers and reinsurers; banks; marketplace and other lenders; mortgage originators; mortgage and other loan servicers; and homebuilders), and mortgage derivatives such as stripped RMBS and inverse floaters.

About Axonic Capital

Founded in 2010, Axonic Capital also offers commercial and residential real estate strategies, systematic fixed income and commercial lending strategies along with its structure credit expertise.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call (212) 259-0430 or download the file from www.AxonicFunds.com. Please read the prospectus carefully before you invest. Investing involves risks, including loss of principal. The fund is newly organized with limited operational history. For more information about the funds’ risks, please refer to the prospectuses which can be found at www.AxonicFunds.com.

ALPS Distributors, Inc. is the distributor of the Axonic Strategic Income Fund (ALPS Distributors, Inc. 1290 Broadway, Suite 1000, Denver, CO 80203). Axonic Capital LLC and ALPS are not affiliated.

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