Fund

AXIOMA Leveraged Bond Fund

AXIOMA Leveraged Bond Fund

Performance

June 2018
  • Growth of $100 investment
  • Monthly return

Period

Performance, per period *The percentage of Not Rated bonds as of 30.06.2018 is 0.6%.

Historical volatility4.9% p.a.
1M-0.2%
3M-1.8%
YTD-3.2%
201710.3%
201613.9%
201510.4%
Since inception7.1% p.a.
Period
Performance, per period *The percentage of Not Rated bonds as of 30.06.2018 is 0.6%.
1M
-0.2%
3M
-1.8%
YTD
-3.2%
2017
10.3%
2016
13.9%
2015
10.4%
Since inception
7.1% p.a.

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 1.8%

VimpelCom

BB 2.8%

Banco Santander

A- 2.4%

Petroleos Mexicanos

BBB+ 1.8%

Gazprom

BBB- 1.8%

Lukoil

BBB 1.8%

Allocation June 2018

14% Russia

14% Asia Pacific

3% CIS

10% North America

27% Latin America

9% Developed Europe

15% Middle East / Africa

8% Emerging Europe

Fund details June 2018

AuM $82’707'594.69
ISIN (B2) KYG0750S1378
Currency USD
Type Fixed Income, open-ended
Coupons Reinvested
Credit risk Low (average Fund’s credit rating BB+ -BBB)
Leverage 0-100%
Management fee 0.75% p.a.
Performance fee 15%, HWM
Launch date November 27, 2015
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 (2018) 2-4% p.a.

Commentary

June 2018

Trade wars continue to have a marked effect on global financial markets. On 1 June 2018, the US introduced tariffs on steel and aluminium imports from the EU, Mexico and Canada. At the same time, US President Donald Trump instructed the US Trade Representative to compile a list of $200 billion worth of Chinese goods to be subjected to an additional 10% tariff. At its 13 June meeting, the US Federal Reserve raised the interest rate by 0.25% to 2% in line with the expectations. Fed Chairman Jerome Powell said that the economy was in great shape and underscored the FOMC’s commitment to further gradual increases with two more rate hikes scheduled for 2018 and another three for 2019. The resulting surge in yields of long-term government bonds proved to be short-lived, as on a monthly basis the 10-year US Treasuries saw their yields remain flat at 2.86%. Meanwhile, the ECB left the interest rate unchanged at 0% announcing the end of the asset purchase programme in December 2018 with the rates set to remain the same at least until autumn 2019. On 12 June, US President Donald Trump and North Korea's Kim Jong-un held a summit in Singapore. In the run-up to the meeting, the two leaders had exchanged some tough words, but the summit itself brought no major sensations. Trump and Kim signed a joint statement which most analysts view as vague and generally non-binding. As a result, this event had no impact on the markets. In Turkey, President Recep Tayyip Erdogan claimed victory in the first round of early elections held on 24 June by taking 52.5% of the vote, with his ruling party winning 42.5% of the separate parliament vote. The financial markets responded positively to the news, but the first wave of optimism quickly subsided with no lasting effect. Brent prices remained within the range of USD 73–79 per barrel, going down moderately in early June before the OPEC meeting of 22 June where Saudi Arabia and Russia spearheaded a decision to boost production by 1 million bopd. Later on, though, the prices saw another hike amid reports of Washington calling on Iran’s key trade partners to halt oil imports from the county starting from 4 November when the US sanctions are scheduled to take effect. Between January and mid-June, the Argentinian peso lost over 50% of its value against the US dollar triggering the resignation of Argentinian Central Bank Governor Federico Sturzenegger. Argentina turned to the IMF for support of its national economy and peso stabilisation and had a 3-year USD 50 bn credit line formally approved by the IMF.

Trade wars continue to have a marked effect on global financial markets. On 1 June 2018, the US introduced tariffs on steel and aluminium imports from the EU, Mexico and Canada. At the same time, US President Donald Trump instructed the US Trade Representative to compile a list of $200 billion worth of Chinese goods to be subjected to an additional 10% tariff. At its 13 June meeting, the US Federal Reserve raised the interest rate by 0.25% to 2% in line with the expectations. Fed Chairman Jerome Powell said that the economy was in great shape and underscored the FOMC’s commitment to further gradual increases with two more rate hikes scheduled for 2018 and another three for 2019. The resulting surge in yields of long-term government bonds proved to be short-lived, as on a monthly basis the 10-year US Treasuries saw their yields remain flat at 2.86%. Meanwhile, the ECB left the interest rate unchanged at 0% announcing the end of the asset purchase programme in December 2018 with the rates set to remain the same at least until autumn 2019. On 12 June, US President Donald Trump and North Korea's Kim Jong-un held a summit in Singapore. In the run-up to the meeting, the two leaders had exchanged some tough words, but the summit itself brought no major sensations. Trump and Kim signed a joint statement which most analysts view as vague and generally non-binding. As a result, this event had no impact on the markets. In Turkey, President Recep Tayyip Erdogan claimed victory in the first round of early elections held on 24 June by taking 52.5% of the vote, with his ruling party winning 42.5% of the separate parliament vote. The financial markets responded positively to the news, but the first wave of optimism quickly subsided with no lasting effect. Brent prices remained within the range of USD 73–79 per barrel, going down moderately in early June before the OPEC meeting of 22 June where Saudi Arabia and Russia spearheaded a decision to boost production by 1 million bopd. Later on, though, the prices saw another hike amid reports of Washington calling on Iran’s key trade partners to halt oil imports from the county starting from 4 November when the US sanctions are scheduled to take effect. Between January and mid-June, the Argentinian peso lost over 50% of its value against the US dollar triggering the resignation of Argentinian Central Bank Governor Federico Sturzenegger. Argentina turned to the IMF for support of its national economy and peso stabilisation and had a 3-year USD 50 bn credit line formally approved by the IMF.