Axonic Strategic Income Fund Class I Shares (AXSIX)

Overview

The company is focused on maximizing risk-adjusted total returns through strategic investments in a wide range of income-producing instruments. By allocating a significant portion of its assets (at least 60%) towards these instruments, the company aims to generate substantial income for its investors. Beyond traditional income-generating avenues, it diversifies investments by including real estate investment trusts (REITs), companies significantly involved in the mortgage business, and various mortgage derivatives, thereby enhancing potential returns while aiming to manage investment risks effectively.

Products and Services

• Income-Producing Instruments

  This refers to the primary focus of the fund's investment strategy, where at least 60% of its net assets are allocated. These instruments can include bonds, dividend-paying stocks, and other securities that provide regular income. The objective is to ensure a steady flow of returns, catering to investors who prioritize income generation in their investment portfolios.

• Real Estate Investment Trusts (REITs)

  An essential component of its diversified investment approach, the fund invests in REITs to capitalize on the potential high returns from real estate markets. This diversification strategy is not only aimed at enhancing yields but also at spreading investment risks across different assets, considering the varying performance of the real estate sector in different economic conditions.

• Equity Securities

  The fund also targets equity securities of companies that have substantial involvement in the mortgage business. This includes lenders, mortgage servicers, and other financial institutions focusing on residential and commercial mortgages. Such investments allow the fund to benefit from the mortgage industry's dynamics, including interest rate movements and housing market trends.

• Mortgage Derivatives

  Investments in mortgage derivatives like stripped RMBS (Residential Mortgage-Backed Securities) and inverse floaters offer a higher risk-return profile. These instruments enable the fund to engage in more complex investment strategies, leveraging the mortgage market's nuances to potentially secure higher returns compared to traditional fixed-income investments.