Fund

AXIOMA Leveraged Bond Fund

AXIOMA Leveraged Bond Fund

Performance

January 2021
  • Growth of $100 investment
  • Monthly return

Period

Performance, per period *The percentage of Not Rated bonds as of 29.01.2021 is 0.2%.

Historical volatility p.a.7.57
1M-0.20
3M3.24
YTD-0.20
202016.75
201914.80
2018-1.84
Since inception p.a.9.78
Period
Performance, per period *The percentage of Not Rated bonds as of 29.01.2021 is 0.2%.
1M
-0.2%
3M
3.24%
YTD
-0.2%
2020
16.75%
2019
14.8%
2018
-1.84%
Since inception p.a.
9.78%

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 -4.8%

Hyundai Capital America

BBB+ 2.8%

BP Capital Markets

A- 2.4%

VEON Holdings

BB+ 2.4%

Sibur Securities

BBB 2.2%

Western Alliance Bank

BBB- 2.2%

Allocation January 2021

27% North America

9% Asia Pacific

21% Latin America

10% Developed Europe

13% Middle East / Africa

7% Emerging Europe

12% Russia

1% CIS

Fund details January 2021

AuM 202'352'813.06
ISIN (B2) KYG0750S1378
Currency USD
Type Fixed Income, open-ended
Coupons Reinvested
Credit risk Low (average Fund’s credit rating BBB-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 4-6% p.a.

Commentary

January 2021

Our fund has registered a small -0.2% retreat in January. The month started on a high note, as the buying fervor, which had intensified post-November US elections, continued. However, lingering risks brought on by a slower-than-expected vaccination campaign roll-out, new mutated strains of the virus, along with disruptions in the retail trading of stocks, have reawakened some older worries and the mood on financial markets has become more cautious. The exhilaration in the first half of the month has been intensified by the Georgia runoff elections which brough two more seats in the Senate for Democrats and with it a majority voting power. With no end to the Covid-19 pandemic yet in view, markets have been taking more comfort in the news of the Democratic sweep, as the political stability and assurances of fiscal support prevail over all other policy concerns. Consequently, the yield on benchmark 10-year US Treasuries has reached its highest level of 1.1% since mid-March. There are numerous factors at play when it comes to the direction the US Treasury yields will go by the end of the year. Our base-case scenario implies a gradual increase of long-term yields, as the economy shows stronger signs of recovery, with any destabilizing, substantial rises likely mitigated by the Fed’s bond-buying programme. At their first policy meetings of 2021 both, Fed and ECB, have vowed their committed support and keeping bond buying programmes unaltered. Brent oil prices have edged towards 60 mark. The price has closed January at over US$56 per barrel, a 7.8% increase from December’s highest level, having been propelled by the Saudi Arabia government announcement of its voluntary unilateral cut of additional 1 million barrels a day. We have gone into the new year fully invested, as we expected the economy to continue to recover and the Fed policy to remain accommodating. At the same time, due to near-term risks related to the rise in Covid-19 infections, we maintain a defensive stance, favouring credit quality over yield and short over long duration. We have added some new issues of companies we already hold (Adani Ports (BBB-/Baa3), Oman Electricity (BB-)), and added several new issuers to our fund portfolio holdings: Mexico Remittances Funding (BBB-), Credito Real (BB/BB+), Mercado Libre (BB+). Our fund closed the month with 4.8% leverage, average duration of 4.6 years and average yield-to-worse of 2.4%.