Axiom European Financial Debt Fund

LN: AXI

Market Cap£85.9m

Last Close 93.5p

Axiom European Financial Debt Fund is a Guernsey-domiciled, London-listed, closed-end fund investing in regulatory capital securities in Europe. It seeks opportunities presented by Basel III and Solvency II transitions. It has a diversified approach across a broad range of subordinated debt issued by financial services companies. It uses five sub-strategies to obtain attractive current income and capital gains. AXI has a target return of 10% pa over seven years.

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Investment summary

Axiom European Financial Debt Fund (AXI) is a closed-end fund that invests in European financials regulatory capital. If a bank’s operations and equity position are robust enough to withstand shock asset losses, these instruments can be to a way to earn a premium return. Axiom also seeks opportunities from regulatory changes that lead banks to redeem some of their legacy instruments that no longer have the same capital rating under stricter rules. This is a niche space where it is important to be familiar with not only the banks, but also regulation, local legislation and even politics. The portfolio has a 6.1% running yield; 7.3% to perpetuity. The stock is trading on a 6.5% dividend, 8% below NAV.

Content on Axiom European Financial Debt Fund
Axiom European Financial Debt Fund – Capital opportunities
Investment companies | Initiation | 13 April 2021
euro invest concept
Axiom European Financial Debt Fund – executive interview
Investment companies | Edison TV | 1 March 2021
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Price performance
%
1m
3m
12m
Actual (0.5) (4.1) 7.5
Relative* (0.8) (5.9) (9.9)
52-week high/low 97.5p/77.5p
*% relative to local index
Key management
David Benamou CEO